Montoure Company uses a perpetual inventory system. It entered into the followin

Question

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

    
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 600 units from beginning inventory, 260 from the February 10 purchase, 150 from the March 13 purchase, 150 from the August 21 purchase, and 385 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.)

Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $40 per unit Feb. 10 Purchase 360 units @ $37 per unit Mar. 13 Purchase 150 units @ $25 per unit Mar. 15 Sales 765 units @ $80 per unit Aug. 21 Purchase 200 units @ $45 per unit Sept. 5 Purchase 580 units @ $42 per unit Sept. 10 Sales 780 units @ $80 per unit Totals 1,890 units 1,545 units | https://newconnect.mheducation.com/flow/connect.html Saved Cost of Sold ofunits sold Cost per Inventory | unit tper| ost per of units | Cost of Goods Sold! #Of units Date 600| @ | $ 40.00!=| $ 24,000.00 Jan 1 Feb 10 Mar 13 0.00

Explanation / Answer

1. Cost of goods available for sale and number of units available for sale is:

b. Ending inventory in unit is:

3. Cost assigned to ending inventory is:

4. Gross Profit earned by company

Date Units acquired Total Amount Jan-01 Beginning Inventory 600 40 24,000 Feb-10 Purchase 360 37 13,320 Mar-13 Purchase 150 25 3,750 Mar-15 Sale Aug-21 Purchase 200 45 9,000 Sep-05 Purchase 580 42 24,360 Sep-10 sale Cost of goods available for sale 1890 74,430

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