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

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Jan.

1

Beginning inventory

660

units

@ $60 per unit

Feb.

10

Purchase

330

units

@ $57 per unit

Mar.

13

Purchase

110

units

@ $45 per unit

Mar.

15

Sales

715

units

@ $70 per unit

Aug.

21

Purchase

160

units

@ $65 per unit

Sept.

5

Purchase

570

units

@ $61 per unit

Sept.

10

Sales

730

units

@ $70 per unit

Totals

1,830

units

1,445

units

Compute the cost assigned to ending inventory using weighted average, and specific identification. For specific identification, units sold consist of 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 110 from the August 21 purchase, and 335 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?

• Specific Identification

• LIFO

• Weighted Average

• FIFO

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