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In: Accounting

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

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.)

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Expert Solution

ekkarill92 answered 1 year ago
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