nformation: Montoure Company uses a perpetual inventory system. It entered into

ID: 2380210 • Letter: N

Question

nformation: Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)

Compute the cost assigned to ending inventory using (a) weighted average, and (b) specific identification. (Round all amounts to cents.)

Compute gross profit earned by the company for each of the four costing methods in part 3.

Check ; WA, $17,760;

Information: Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Required. Compute the cost assigned to ending inventory using (a) weighted average, and (b) specific identification. (Round all amounts to cents.) Compute gross profit earned by the company for each of the four costing methods in part 3. Check ; WA, $17,760;

Explanation / Answer

FIFO

LIFO

Specific

Identifi-cation

Weighted

Average

Sales (1,250 x $75)?

$93,750

Less: Cost of goods sold?

52,500

53,070

52,600

53,648

Gross profit?

$41,250

$40,680

$41,150

$40,102

Montoure