Montoure Company uses a perpetual inventory system. It entered
into the following calendar-year purchases and sales
transactions
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Jan. | 1 | Beginning inventory | 660 | units | @ $60 per unit | |||||||
Feb. | 10 | Purchase | 330 | units | @ $57 per unit | |||||||
Mar. | 13 | Purchase | 110 | units | @ $45 per unit | |||||||
Mar. | 15 | Sales | 715 | units | @ $70 per unit | |||||||
Aug. | 21 | Purchase | 160 | units | @ $65 per unit | |||||||
Sept. | 5 | Purchase | 570 | units | @ $61 per unit | |||||||
Sept. | 10 | Sales | 730 | units | @ $70 per unit | |||||||
Totals | 1,830 | units | 1,445 | units | ||||||||
Compute the cost assigned to ending inventory using weighted
average, and specific identification. For specific identification,
units sold consist of 660 units from beginning inventory, 230 from
the February 10 purchase, 110 from the March 13 purchase, 110 from
the August 21 purchase, and 335 from the September 5
purchase.
4. Compute gross profit earned by the company for
each of the four costing methods. (Round your average cost
per unit to 2 decimal places.)
5. The company’s manager earns a bonus based on a
percent of gross profit. Which method of inventory costing produces
the highest bonus for the manager?
Specific Identification
LIFO
Weighted Average
FIFO
FIFO Method has the Highest Gross Profit Ratio. So, FIFO Metho produces the highest bonus for the Manager.
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...
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 660 units @ $35 per unit 330 units @ $32 per unit 110 units @ $20 per unit Activities Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 760 units @ $75 per unit 180 units @ $40 per unit 570...
Montoure Company uses a perpetual inventory system. It entered into the following calendar year purchases and sales transactions Units Acquired at Cost Units Sold at Retail 660 units @ $35 per unit 330 units@ $32 per unit 110 units @ $20 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 760 units @ $75 per unit 180 units @ $40 per unit...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units $40 per unit Feb. 10 Purchase 400 units@ $37 per unit Mar. 13 Purchase 190 units@ $15 per unit Mar. 15 Sales 805 units@ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43 per unit Sept. 10...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 620 units @ $45 per unit Feb. 10 Purchase 310 units @ $42 per unit Mar. 13 Purchase 120 units @ $30 per unit Mar. 15 Sales 770 units @ $85 per unit Aug. 21 Purchase 190 units @ $50 per unit Sept. 5 Purchase 520 units @ $48...
Chapter 05 Homeworki Saved 18 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Activities Units Acquired at Cost 660 units $60 per unit 330 units $57 per unit 110 units $45 per unit Units Sold at Retail Date 1 Beginning inventory Jan 1 Feb. 10 Purchase polnts Mar 13 Purchase 715 units@$70 per unit Mar. 15 Sales 160 units $65 per unit 570 units@$61 per unit Aug. 21 Purchase Sept. Sept....
Montoure Company uses a perpetual Inventory system. It entered into the following calendar-year purchases and sales transactions Units sold at Retail Unite Aequired at Cost 680 units 540 per unit 320 units @ $35 per unit 100 units $23 per unit Date Activities Jan. Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Totals 720 unitse $75 per unit 130 units 490 units $45 per unit $41 per unit...
ontoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 620 units @ $45 per unit Feb. 10 Purchase 380 units @ $42 per unit Mar. 13 Purchase 100 units @ $30 per unit Mar. 15 Sales 735 units @ $70 per unit Aug. 21 Purchase 170 units @ $50 per unit Sept. 5 Purchase 400 units @ $46...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $35 per unit Feb. 10 Purchase 300 units @ $32 per unit Mar. 13 Purchase 150 units @ $20 per unit Mar. 15 Sales 725 units @ $80 per unit Aug. 21 Purchase 190 units @ $40 per unit Sept. 5 Purchase 540 units @ $37...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 540 units @ $40 per unit Feb. 10 Purchase 320 units @ $36 per unit Mar. 13 Purchase 100 units @ $24 per unit Mar. 15 Sales 650 units @ $85 per unit Aug. 21 Purchase 120 units @ $45 per unit Sept. 5 Purchase 520 units @ $41 per unit Sept....