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Montoure Company Use x https://newconnect.mheducation.com/flow/connect.html - Yo

ID: 2553073 • Letter: M

Question

Montoure Company Use x https://newconnect.mheducation.com/flow/connect.html - You received par Problem 6-4AA Periodic: Alternative cost flows LO P3 Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and salies Units Acquired at Cost 610 units e $40.00 per unit 405 unitse $37.00 per unit 205 units e $22.08 per unit Dan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales 805 units $70.00 per unit 110 units $45.00 per unit 510 units $41.00 per unit 620 units e $70.00 per unit 1,425 units Totals 1,840 units Required: 1. Compute cost of goods available for sale and the number of units available for sale Cost of goods available for sale S 69.755

Explanation / Answer

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

405

37

14985

13-Mar

purchase

205

22

4510

21-Aug

purchase

110

45

4950

5-Sep

purchase

510

41

20910

total units

1840

69755

weighted average cost

total cost/no of units

69755/1840

37.91

total no of units

1840

no. of units sold

805+620

1425

units in year end inventory

415

cost of year end inventory using weighted average cost

no of units in year end inventory*weighted average cost

415*37.91

15732.65

cost of year end inventory using specific identification

date

units

price

unit* price

10-Feb

110

37

4070

21-Aug

55

45

2475

5-Sep

250

41

10250

total

415

16795

cost of year end inventory using specific identification

16795

cost of goods sold using FIFO

No of units sold

1425

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

405

37

14985

13-Mar

purchase

205

22

4510

21-Aug

purchase

110

45

4950

5-Sep

purchase

95

41

3895

total

1425

52740

cost of goods sold using FIFO

52740

cost of goods sold using LIFO

No of units sold

1425

date

explanation

units

price

unit*price

5-Sep

purchase

510

41

20910

21-Aug

purchase

110

45

4950

13-Mar

purchase

205

22

4510

10-Feb

purchase

405

45

18225

1-Jan

beginning inventory

195

40

7800

total

1425

56395

cost of goods sold using FIFO

56395

cost of goods sold

no of units sold*weighted average price

1425*37.91

54021.75

cost of goods sold using special identification

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

295

45

13275

13-Mar

purchase

205

22

4510

21-Aug

purchase

55

45

2475

5-Sep

purchase

260

41

10660

total

1425

55320

cost of goods sold using special identification

55320

FIFO

LIFO

weighted average cost

Specific identification

sales

99750

99750

99750

99750

cost of goods sold

52740

56395

54021.75

55320

gross profit

47010

43355

45728.25

44430

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

405

37

14985

13-Mar

purchase

205

22

4510

21-Aug

purchase

110

45

4950

5-Sep

purchase

510

41

20910

total units

1840

69755

weighted average cost

total cost/no of units

69755/1840

37.91

total no of units

1840

no. of units sold

805+620

1425

units in year end inventory

415

cost of year end inventory using weighted average cost

no of units in year end inventory*weighted average cost

415*37.91

15732.65

cost of year end inventory using specific identification

date

units

price

unit* price

10-Feb

110

37

4070

21-Aug

55

45

2475

5-Sep

250

41

10250

total

415

16795

cost of year end inventory using specific identification

16795

cost of goods sold using FIFO

No of units sold

1425

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

405

37

14985

13-Mar

purchase

205

22

4510

21-Aug

purchase

110

45

4950

5-Sep

purchase

95

41

3895

total

1425

52740

cost of goods sold using FIFO

52740

cost of goods sold using LIFO

No of units sold

1425

date

explanation

units

price

unit*price

5-Sep

purchase

510

41

20910

21-Aug

purchase

110

45

4950

13-Mar

purchase

205

22

4510

10-Feb

purchase

405

45

18225

1-Jan

beginning inventory

195

40

7800

total

1425

56395

cost of goods sold using FIFO

56395

cost of goods sold

no of units sold*weighted average price

1425*37.91

54021.75

cost of goods sold using special identification

date

explanation

units

price

unit*price

1-Jan

beginning inventory

610

40

24400

10-Feb

purchase

295

45

13275

13-Mar

purchase

205

22

4510

21-Aug

purchase

55

45

2475

5-Sep

purchase

260

41

10660

total

1425

55320

cost of goods sold using special identification

55320

FIFO

LIFO

weighted average cost

Specific identification

sales

99750

99750

99750

99750

cost of goods sold

52740

56395

54021.75

55320

gross profit

47010

43355

45728.25

44430

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