Question

Montoure Company uses a periodic inventory system. It entered into the following calendar year purchases and sales transactions Units sold at Retail Units acquired at Cost 610 units $40.00 per unit 405 units $37.00 per unit 205 units $22.00 per unit Date Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 805 units $70.00 per unit 110 units. $45.00 per unit 510 units $41.00 per unit $70.00 per unit 620 units 1.425 units 1.840 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 610 units from beginning inventory, 295 from the February 10 purchase, 205 from the March 13 purchase, 55 from the August 21 purchase, and 260 from the September 5 purchase 4. Compute gross profit earned by the company for each of the four costing methods Complete this question by entering your answers in the tabs below. Required I Required 2 Required 3 Required 4 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 Required 2 > < Prey 4 of 7 Next >

Answer 1

405 Computation of cost of goods available for sale I and units available for sale Date A chuitics. G units Peenit of total cost Jan 1. Beginning inventory 610 $40 feb 10 Purchases. 405 837 14,985 mar 13 Pulchases fa 205 8 22 &sis 4,510 Aug 21 Pulchases." entro lo 845 wls 4,950 sept s Purchases. 510 sur des 2 1840 units shoop 095 iton Hor $69,755 cost of goods available for sale - AngS $69,755 Non of units available for sale = 1,840 units I 1 tromyaout a dorost compution of Ending inventory unitsi particulous nous wito u cenit nou of units available for sale = 1840 cessi non of units sold (805+620) t = 0 4 425 Ending inventory IS: DON > 2 Ending inventory: 3200 frota a) FIFO : N wir seit ² 415 $41 $17,015 3 b).LIFO , >> U15 x $40 ) $16,600 c) weight average 2 Aug cost per unit = $.64455 = 1840 = $37.91 I : 415 × $37.91 $ 15,723

I specific identification: 2 February (405-295) $37 - Aug 21 (110-55)=SSxsus = sept s - 1510-260) = 2500$ul = S 25 13 To Ending inventory & $4,070 21475 10,250 $ 16,995 doy Says 4 calculation of Gross Peopit: Parhulae . Santo CIFO dire verighete spidentification sales 899,750 $99,750 $99,750 $99,750 coit of th $2,250 3153,155 poosy, 032 10 52,960 good sord Gross propie 47,070 46,595 (lo 45,718 461790 30.0 23 Ban d 3 sales withdrinos 004,2007 (805x: $70) + (620x$ 70) = $99,750 specific weighted no identipatia фтау $69,755 $69,755 - cost of goods sold Particulas FIFO LIFO cost of goods available for $69,755 $69,755 sale ves. Ending!! 31002.00 inventory 17,015 16,600 cost of goods 52,740 53,15S sold 15,723 54,032 16,795 52,960