Reference no: EM132752733

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        600units                        @ $40 per unit

Feb.10         Purchase                 400units                          @ $37 per unit

Mar.13          Purchase               190units                            @ $15 per unit

Mar.15            Sales                    805units                          @ $70 per unit

Aug.21           Purchase               190units                           @ $45 per unit

Sept.5           Purchase                 550units                          @ $43 per unit

Sept.10          Sales                   740units                          @ $70 per unit

                  Totals                   1,930units                         1,545units

Required:

Problem 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 600 units from beginning inventory, 300 from the February 10 purchase, 190 from the March 13 purchase, 140 from the August 21 purchase, and 315 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.)