Question

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

540

units

@ $40 per unit

Feb.

10

Purchase

320

units

@ $36 per unit

Mar.

13

Purchase

100

units

@ $24 per unit

Mar.

15

Sales

650

units

@ $85 per unit

Aug.

21

Purchase

120

units

@ $45 per unit

Sept.

5

Purchase

520

units

@ $41 per unit

Sept.

10

Sales

640

units

@ $85 per unit

Totals

1,600

units

1,290

units

    
Required:
1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold consist of 540 units from beginning inventory, 220 from the February 10 purchase, 100 from the March 13 purchase, 70 from the August 21 purchase, and 360 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

rev: 10_23_2017_QC_CS-104883, 11_09_2017_QC_CS-108457, 02_24_2018_QC_CS-119467, 04_06_2018_QC_CS-123768, 02_08_2019_QC_CS-156418, 03_15_2019_QC_CS-162654

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