Reference no: EM132224912

Question - 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	700 units@ $50 per unit
Feb. 10	Purchase	350 units@ $44 per unit
Mar. 13	Purchase	150 units@ $32 per unit
Mar. 15	Sales		705 units@ $80 per unit
Aug. 21	Purchase	190 units@ $55 per unit
Sept. 5	Purchase	540 units@ $51 per unit
Sept. 10	Sales		730 units@ $80 per unit
	Totals	1,930 units	1,435 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 700 units from beginning inventory. 250 from the February 10 purchase. 150 from the March 13 purchase, 140 from the August 21 purchase, and 195 from the September 5 purchase. (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.