Question

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transacti& Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 RX Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Montoure Company

Cost of goods available for sale = Opening inventory + Purchases

= (700 units × $ 50 per unit) + (350 units × $ 44 per unit) + (150 units × $ 32 per unit) + (190 units × $ 55 per unit) + (540 units × $ 51 per unit)

= $ 93,190

No of units available for sale = 1,930 units

Ending inventory in units = No of units available for sale - sales

= 1,930 - 1,435 units = 495 units

Average cost = Cost of goods available for sale / no of units available for sale

= $ 93,190 / 1,930 units = $ 48.28 per unit

Ending inventory:

Sl no Calculation
a FIFO 495 units × $ 51 per unit $ 25,245
b LIFO 495 units × $ 50 per unit $ 24,750
c Weighted average 495 units × $ 48.28 per unit $ 23,898.60
d Spefic identification (100 units × $ 44 per unit)+(50 units × $ 55 per unit)+(345 units × $ 51 per unit) $ 24,745

Gross profit:

FIFO LIFO Weighted average Specific identification
Sales (1,435 units × $ 80 per unit) $ 114,800 $ 114,800 $ 114,800 $ 114,800

Less : Costs of goods sold

(Cost of goods available for sale - Ending inventory)

(93,190-25,245)

($ 67,945)

(93,190-24,750)

($ 68,440)

(93,190-23,898.60)

($ 69,291.40)

(93,190-24,745)

($ 68,445)

Gross profit $ 46,855 $ 46,360 $ 45,508.60 $ 46,355
Add a comment
Know the answer?
Add Answer to:
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT