Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases...
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Marlow Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions, Problem 6-2A Alternative cost flows-perpetual P1 Date Activities Units Acquired at Cost Units Sold at Retail 600 units @ $44/unit 200 units @ $40/unit 100 units @ $20/unit Jan 1 Feb. 10 Mar. 13 Mar. 15 Aug. 21 Sept. 5 Sept. 10 400 units @ $75/unit Beginning inventory. Purchase Purchase Sales Purchase Purchase Sales Totals 160 units $60/unit 280 units $18/unit 200 units @ $75/unit 600 units 1,340 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) specific identification-units sold Check 31 Ending invent consist of 500 units from beginning inventory and 100 units from the March 13 purchase, and (c) weighted $33,040, WAC, 534,055, average cost. (Round per unit costs to three decimals, but inventory balances to the dollar.) 4. Compute gross profit earned by the company for each of the three costing methods in part 3
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