Montoure Company uses a perpetual inventory system. It enteredinto the following calendar-year purchases and salestransactions
| Date | Activities | Units Acquired at Cost | Units Sold at Retail |
| Jan. | 1 | | Beginning inventory | | 600 | units | @ $60 per unit | | | | |
| Feb. | 10 | | Purchase | | 480 | units | @ $57 per unit | | | | |
| Mar. | 13 | | Purchase | | 120 | units | @ $42 per unit | | | | |
| Mar. | 15 | | Sales | | | | | | 785 | units | @ $80 per unit |
| Aug. | 21 | | Purchase | | 180 | units | @ $65 per unit | | | | |
| Sept. | 5 | | Purchase | | 470 | units | @ $63 per unit | | | | |
| Sept. | 10 | | Sales | | | | | | 650 | units | @ $80 per unit |
| | | | Totals | | 1,850 | units | | | 1,435 | units | |
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Required:
1. Compute cost of goods available for sale and the numberof units available for sale.
2. Compute the number of units in endinginventory.
3. Compute the cost assigned to ending inventoryusing (a) FIFO, (b) LIFO, (c) weightedaverage, and (d) specific identification. For specificidentification, units sold consist of 600 units from beginninginventory, 380 from the February 10 purchase, 120 from the March 13purchase, 130 from the August 21 purchase, and 205 from theSeptember 5 purchase.
4. Compute gross profit earned by the company foreach of the four costing methods. (Round your average costper unit to 2 decimal places.)
5. The company’s manager earns a bonus based on apercent of gross profit. Which method of inventory costing producesthe highest bonus for the manager?
