1. Business
  2. Accounting
  3. montoure company uses a perpetual inventory system it entered into...

Question: montoure company uses a perpetual inventory system it entered into...

Question details

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 600 units @ $35 per unit
Feb. 10 Purchase 300 units @ $32 per unit
Mar. 13 Purchase 150 units @ $20 per unit
Mar. 15 Sales 725 units @ $80 per unit
Aug. 21 Purchase 190 units @ $40 per unit
Sept. 5 Purchase 540 units @ $37 per unit
Sept. 10 Sales 730 units @ $80 per unit
Totals 1,780 units 1,455 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.

Ending inventory units



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 600 units from beginning inventory, 200 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 365 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Complete this questions by entering your answers in the below tabs LIFOWeighted Specific Id Perpetual FIFO Perpetual LIFO Compute the cost assigned to ending inventory using FIFO. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO Goods Purchased Cost of Goods Sol Inventory Balance #of units cost per | unit # of units sold | Costper Cost of Goods Sold Cost per Inventory Balance Date # of units unit unit Jan 1 60035.0021,000.00 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10



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.)

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.) Weighted Specific AverageIdentification FIFO LIFO Sales Less: Cost of goods sold Gross proft O S 01$

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution