60.1K

Verified Solution

Link Copied!

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions.

Date			Activities	Units Acquired at Cost						Units Sold at Retail
Jan.	1		Beginning inventory	540	units	@	$	55	per unit
Feb.	10		Purchase	460	units	@	$	53	per unit
Mar.	13		Purchase	100	units	@	$	40	per unit
Mar.	15		Sales								745	units	@	$	80	per unit
Aug.	21		Purchase	170	units	@	$	61	per unit
Sept.	5		Purchase	430	units	@	$	54	per unit
Sept.	10		Sales								600	units	@	$	80	per unit
			Totals	1,700	units						1,345	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, 360 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 225 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.)

Answer & Explanation Solved by verified expert

See Answer