Question

Montoure Company uses a periodic inventory system. It entered into the following calendar year purchases and sales transactions Date Units sold at Retail Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Units Required at Cost 610 units. 540.00 per unit 405 units. 537.00 per unit 205 units $22.00 per unit 895 units $70.00 per unit 110 units. $45.00 per unit 510 units. 541.00 per unit $70.00 per unit 620 units 1.425 units Totals 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 > < Prev 4 of 7 Next >

Answer 1

Answer: 1) Cost of goodle and number of while available for sali C Periodic loventage Systema) Number of units available for sale = beginning laweday I ferchaies – Selas - Go + Chos+205 +10+50) Csort 620) a dopo 610 + 1230 -1425 - 615 units cost of goods arailable for sale = 65 units @ $61.00 lenit - 1,015__ Number of write to erdiga (semacy! L = Nomber of units arailable for sale I . Les tasks 3) Coef of ending loventory and gross profit earrad under different methods : a) fifo Method: cost of ending inventore - 15 units a se wait = $15015 -

Grass Profit! - e sales t closing Careloy - Begining loweslay - fuccheses alf 805x $10.) + C620 x $10]+[+11,05) - - [Coloxw) - [(105 x 37 ) +(205_13a) + C110045) = [56.350 +693400] + [17,015) – [4,400] - [14,985 + __ 6510 + 6950 tests] - Dolores $ 61,010 - 1661 Lifo Method _ - Cost of ending Inventory : __ $ $ Ierlang Grose - Proft: =[56,350+ 47.600]+[16,600] - [desco-[16105E LSD +_4950 + S $45670 $46.595 Jorio han (c) Weighted Graspe Weighted average unit price. '66100401+(405x 35)+2050.22) +C110x405) - 24400 + 16985 +6510 +6950 + $520910 1840 - $ J9

cost of ending Inventory -=650 314 idol.. 152265 ** Groms Profeti t lainnya css350 +63600J + (15, 132.65] [24400) mä – C1698546510 76590 +SAASI - $6 .5 145,728.65 d) Specific Identification : Cost of ending lovertas = 16052951.2551J + EC10-55) x 45] - + [lslo-280) xces] - 4070 +1675 + 12.250 - $ 16,795 Gross Profil! , non _ . (56350 +63462] + [6,795)-[24400) - [ą 985+6560 +4590 + 3 = $ fabryo
Thank you