60.1K

Verified Solution

Link Copied!

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions.

Date			Activities	Units Acquired at Cost						Units Sold at Retail
Jan.	1		Beginning inventory	620	units	@	$	45	/unit
Feb.	10		Purchase	310	units	@	$	42	/unit
Mar.	13		Purchase	120	units	@	$	30	/unit
Mar.	15		Sales								770	units	@	$	85	/unit
Aug.	21		Purchase	190	units	@	$	50	/unit
Sept.	5		Purchase	520	units	@	$	48	/unit
Sept.	10		Sales								710	units	@	$	85	/unit
			Totals	1,760	units						1,480	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 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 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