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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 580 units from beginning inventory, 320 from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the September 5 purchase.)

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.)

5. The companys manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager?

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transaction Required: 1. Compute cost of goods available for sale and the number of units avallable for sale. 2. Compute the number of units in ending inventory. ompute the cost assigned to ending inventory using FIFO. (Round your average cost per unit to 2 decimal places.) Compute the cost assigned to ending inventory using LIFO. (Round your average cost per unit to 2 decimal places.) Compute the cost assigned to ending inventory using weighted average. (Round vour average cost nor unit th 2 Aomimal alame. Compute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the Sep 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.) 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? LIFO Specific Identification FFFO Weighted Average

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