Question

Montoure Company uses a perpetual inventory system. It entered into the following calendar year purchases and sales transactions Units Sold at Retail Units Acquired at Cost 57e units $50 per unit 380 units 547 per unit 190 units@ $35 per unit Date Activities Jan. 1 Beginning inventory Feb. 1e Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 19 Sales Totals 700 units@ $75 per unit 200 units @ $55 per unit 590 units@ $53 per unit 790 units 575 per unit 1,490 units 1,938 units 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 $ 36,936 1,490 units 2. Compute the number of units in ending inventory. Ending inventory 440 units

FIFO, LIFO, WAV, and Specific Identification. The top portion includes the units at cost and units sold.

Answer 1

1.

Cost of goods available for Sales	$ 95,280
Number of units available for sale	1,930	units

2.

Number of units in ending inventory

440 units

3. Perpetual FIFO:

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	No. of Units	Cost per Unit	Amount	No. of Units	Cost per Unit	Amount	No. of Units	Cost per Unit	Amount
Jan 1							570	$ 50	$ 28,500
Feb 10	380	$ 47	17,860				570 380	50 47	28,500 17,860
							950		46,360
Mar 13	190	35	6,650				570 380 190	50 47 35	28,500 17,860 6,650
							1,140		53,010
Mar 15				570 130	50 47	28,500 6,110	250 190	47 35	11,750 6,650
				700		34,610	440		18,400
Aug 21	200	55	11,000				250 190 200	47 35 55	11,750 6,650 11,000
							640		29,400
Sep 5	590	53	31,270				250 190 200 590	47 35 55 53	11,750 6,650 11,000 31,270
							1,230		60,670
Sep 10				250 190 200 150	47 35 55 53	11,750 6,650 11,000 7,950	440	53	23,320
				790		37,350
Totals	1,360		66,780	1,490		71,960	440	53	23,320

Perpetual LIFO:

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost
Jan 1							570	$ 50	$28,500
Feb 10	380	47	17,860				570 380	50 47	28,500 17,860
							950		46,360
Mar 13	190	35	6,650				570 380 190	50 47 35	28,500 17,860 6,650
							1,140		53,010
Mar 15				190 380 130	35 47 50	6,650 17,860 6,500	440	50	22,000
				700		31,010	440	50	22,000
Aug 21	200	55	11,000				440 200	50 55	22,000 11,000
							640		33,000
Sep 5	590	53	31,270				440 200 590	50 55 53	22,000 11,000 31,270
							1,230		64,270
Sep 10				590 200	53 55	31,270 11,000	440	50	22,000
				790		42,270
Totals	1,360		66,780	1,490		73,280	440		22,000

Weighted Average Perpetual:

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost
Jan 1							570	$ 50	$ 28,500
Feb 10	380	$ 47	$17,860				570 380	50 47	28,500 17,860
							950	48.80	46,360
Mar 13	190	35	6,650				950 190	48.80 35	46,360 6,650
							1,140	46.50	53,010
Mar 15				700	46.50	32,550	440	46.50	20,460
Aug 21	200	55	11,000				440 200	46.50 55	20,460 11,000
							640	49.16	31,460
Sep 5	590	53	31,270				640 590	49.16 53	31,460 31,270
							1,230	51	62,730
Sep 10				790	51	40,290	440	51	22,440
Totals	1,360		66,780	1,490		72,840	440	51	22,440

Specific Identification :

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost	No. of Units	Unit Cost	Total Cost
Jan 1							570	$ 50	$28,500
Feb 10	380	$ 47	$17,860				570 380	50 47	28,500 17,860
							950		46,360
Mar 13	190	35	6,650				570 380 190	50 47 35	28,500 17,860 6,650
							1.140		53,010
Mar 15				700
Aug 21	200	55	11,000
Sep 5	590	53	31,270
Totals	1,360		$66,780	1,490		72,460	440		22,820

4.  

	FIFO	LIFO	Weighted Average	Specific Identification
Sales	$111,750	$111,750	$ 111,750	$ 111,750
Less: Cost of Goods Sold	71,960	73,280	72,840	72,460
Gross Profit	$39,790	$ 38,470	$ 38,910	$ 39,2905

5. FIFO.