Reference no: EM131914965

Problem

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	660	units	@	$	60	/unit
Feb.	10	Purchase	330	units	@	$	57	/unit
Mar.	13	Purchase	110	units	@	$	45	/unit
Mar.	15	Sales								715	units	@	$	70	/unit
Aug.	21	Purchase	160	units	@	$	65	/unit
Sept.	5	Purchase	570	units	@	$	61	/unit
Sept.	10	Sales								730	units	@	$	70	/unit
		Totals	1,830	units						1,445	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 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.