Question - 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 620 units @ $ 45 /unit
Feb. 10 Purchase 310 units @ $ 42 /unit
Mar. 13 Purchase 120 units @ $ 30 /unit
Mar. 15 Sales 770 units @ $ 85 /unit
Aug. 21 Purchase 190 units @ $ 50 /unit
Sept. 5 Purchase 520 units @ $ 48 /unit
Sept. 10 Sales 710 units @ $ 85 /unit
Totals 1,760 units 1,480 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 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 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. (Round your average cost per unit to 2 decimal places.)