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 600 units @ $60 per unit 480 units @ $57 per unit 120 units @ $42 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 785 units @ $80 per unit 180 units @ $65 per unit 470 units @ $63 per unit 650 units @ $80 per unit 1,435 units 1,850 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 $ 109,710 1,850 units

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 600 units from beginning inventory, 380 from the February 10 purchase, 120 from the March 13 purchase, 130 from the August 21 purchase, and 205 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.)

Answer 1

Requirement C Date Weighted Average Method Perpetual inventory Record Purchases Cost of goods sold Inventory Balance No of Units Cost per unit No of Units sold cost per unit Cost of goods sold No of Units Cost per unit Inventory Balance 600 $ 60.00 $ 36,000.00 Jan 1. feb 10. 480 $ 57.00 600 $ 480 $ 1080 $ 60.00 57.00 58.67 $ $ $ 36,000.00 27,360.00 63,360.00 Mar 13. 120 $ 42.00 1080 $ 120 $ 1200 $ 58.67 42.00 57.00 $ $ $ 63,360.00 5,040.00 68,400.00 Mar 15. 785 $ 57.00 $ 44,745.00 415 $ 57.00 $ 23,655.00 Aug 21. 180 $ 65.00 415 $ 180 $ 595 $ 57.00 $ 65.00 $ 59.42 $ 23,655.00 11,700.00 35,355.00 Sep 5. 470 $ 63.00 595 $ 470 $ 1065 $ 59.42 63.00 61.00 $ $ $ 35,355.00 29,610.00 64,965.00 Sep 10. 650 $ 61.00 $ 39,650.00 415 $ 61.00 $ 25,315.00 1435 $ 84,395.00 415 $ 25,315 Requirement D Date Specific Identification Method Perpetual inventory Record Purchases Cost of goods sold Inventory Balance No of Units Cost per unit No of Units sold cost per unit Cost of goods sold No of Units Cost per unit Inventory Balance 600 $ 60.00 $ 36,000.00 Jan 1. feb 10. 480 $ 57.00 600 $ 480 $ 60.00 57.00 $ $ 36,000.00 27,360.00 Mar 13. 120 $ 42.00 600 $ 480 $ 120 $ 60.00 57.00 42.00 $ $ $ 36,000.00 27,360.00 5,040.00 Mar 15. 600 $ 185 $ 60.00 $ 57.00 $ 36,000.00 10,545.00 295 $ 120 $ 57.00 42.00 $ $ 16,815.00 5,040.00 21-Aug 180 $ 65.00 295 $ 120 $ 180 $ 57.00 42.00 65.00 $ $ $ 16,815.00 5,040.00 11,700.00 5-Sep 470 $ 63.00 295 $ 120 $ 180 $ 470 $ 57.00 42.00 65.00 63.00 $ $ $ $ 16,815.00 5,040.00 11,700.00 29,610.00 10-Sep 195 $ 120 $ 130 $ 205 $ 57.00 $ 42.00 $ 65.00 $ 63.00 $ 11,115.00 5,040.00 8,450.00 12,915.00 100 $ 50 $ 265 $ 57.00 65.00 63.00 $ $ $ 5,700.00 3,250.00 16,695.00 1435 1435 $ $ 84,065.00 84,065.00 415 415 $ 25,645

Requirement A Date FIFO Method Perpetual inventory Record Purchases Cost of goods sold Inventory Balance No of Units Cost per unit No of Units sold cost per unit Cost of goods sold No of Units Cost per unit Inventory Balance 600 $ 60.00 $ 36,000.00 Jan 1. feb 10. 480 $ 57.00 600 $ 480 $ 60.00 57.00 $ $ 36,000.00 27,360.00 Mar 13. 120 $ 42.00 600 $ 480 $ 120 $ 60.00 57.00 42.00 $ $ $ 36,000.00 27,360.00 5,040.00 Mar 15. 600 $ 185 $ 60.00 57.00 $ $ 36,000.00 10,545.00 295 $ 120 $ 57.00 42.00 $ $ 16,815.00 5,040.00 21 - Aug 180 $ 65.00 295 $ 120 $ 180 $ 57.00 $ 42.00 $ 65.00 $ 16,815.00 5,040.00 11,700.00 5-Sep 470 $ 63.00 295 $ 120 $ 180 $ 470 $ 57.00 42.00 65.00 63.00 $ $ $ $ 16,815.00 5,040.00 11,700.00 29,610.00 10-Sep 415 $ 63.00 $ 26,145.00 295 $ 120 $ 180 $ 55 $ 57.00 $ 42.00 $ 65.00 $ 63.00 $ 16,815.00 5,040.00 11,700.00 3,465.00 1435 $ 83,565.00 $ 26,145 Requirement B Date LIFO Method Perpetual inventory Record Purchases Cost of goods sold Inventory Balance No of Units Cost per unit No of Units sold cost per unit Cost of goods sold No of Units Cost per unit Inventory Balance 600 $ 60.00 $ 36,000.00 Jan 1. feb 10. 480 $ 57.00 600 $ 480 $ 60.00 57.00 $ $ 36,000.00 27,360.00 Mar 13. 120 $ 42.00 600 $ 480 $ 120 $ 60.00 57.00 42.00 $ $ $ 36,000.00 27,360.00 5,040.00 mar 15. 415 $ 60.00 $ 24,900.00 120 $ 480 $ 185 $ 42.00 $ 57.00 $ 60.00 $ 5,040.00 27,360.00 11,100.00 Aug 21. 180 $ 65.00 415 $ 180 $ 60.00 $ 65.00 $ 24,900.00 11,700.00 Sep 5. 470 $ 63.00 415 $ 180 $ 470 $ 60.00 $ 65.00 $ 63.00 $ 24,900.00 11,700.00 29,610.00 sep 10. 415 $ 60.00 $ 24,900.00 470 $ 180 $ 63.00 $ 65.00 $ 29,610.00 11,700.00 1435 1435 $ $ 84,810.00 84,810.00 415 415 $ 24,900