Montoure Company Uses A Perpetual Inventory System It Entered Into The Following Calendar Year Purchases And Sales Tran 1 (27.76 KiB) Viewed 48 times
Montoure Company Uses A Perpetual Inventory System It Entered Into The Following Calendar Year Purchases And Sales Tran 2 (20.6 KiB) Viewed 48 times
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 600 units @ $45 per unit Beginning inventory Purchase Feb. 10 400 units @ $42 per unit Mar. 13 Purchase 200 units @ $27 per unit Mat 15 Sales 800 units a $75 per unit Aug, 21 Purchase 100 units @ $50 per unit Sep. 5 Purchase 500 units $46 per unit Sep. 10 Sales 600 units @ $75 per unit 1,400 units Totals 1,800 units Required
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. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Analysis Component 5. The company's manager earns a bonus based on a percentage of gross profit. Which method of inventory costing produces the highest bonus for the manager?
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