Montoure company uses a perpetual inventory system

Assignment Help Financial Accounting

Reference no: EM13960179

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	560	units	@	$	55	/unit
Feb.	10	Purchase	440	units	@	$	52	/unit
Mar.	13	Purchase	140	units	@	$	40	/unit
Mar.	15	Sales								710
Aug.	21	Purchase	180	units	@	$	60	/unit
Sept.	5	Purchase	540	units	@	$	57	/unit
Sept.	10	Sales								720

		Totals	1,860	units						1,430

Required:

1. Compute cost of goods available for sale and the number of units available for sale.


Cost of goods available for sale
Number of units available for sale		units

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 560 units from beginning inventory, 340 from the February 10 purchase, 140 from the March 13 purchase, 130 from the August 21 purchase, and 260 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

		Ending Inventory
(a)	FIFO
(b)	LIFO
(c)	Weighted average
(d)	Specific identification

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.)

Sales
Less: Cost of goods sold
Gross profit

Reference no: EM13960179

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