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

DateActivitiesUnits Acquired at CostUnits Sold at RetailJanuary $1$Beginning inventory$680$units@ $$40$ per unit$$February $10$Purchase$320$units@ $$35$ per unit$$March $13$Purchase$100$units@ $$23$ per unit$$March $15$Sales$720$units@ $$75$ per unitAugust $21$Purchase$130$units@ $$45$ per unit$$September $5$Purchase$490$units@ $$41$ per unit$$September $10$Sales$620$units@ $$75$ per unit$$Totals$1,720$units$1,340$units$$

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$)$ LIFO, $($c$)$ weighted average, and $($d$)$ specific identification. $($For specific identification, units sold consist of $680$ units from beginning inventory, $220$ from the February $10$ purchase, $100$ from the March $13$ purchase, $80$ from the August $21$ purchase, and $260$ from the September $5$ purchase.$)$

$4.$ Compute gross profit earned by the company for each of the four costing methods.

Note: 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?

multiple choice

LIFO

FIFO

LIFO

Specific Identification

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