Question

Please complete 3 and 4

Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Units Acquired at Cost 780 units @ $80.00 per unit 490 units @ $77.00 per unit 290 units @ $62.00 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 890 units @ $110.00 per unit 280 units @ $85.00 per unit 680 units @ $81.00 per unit 1,040 units @ $110.00 per unit 1,930 units 2,520 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Answer is complete and correct. Cost of goods available for sale Number of units available for sale 196,990 2.520 units 2. Compute the number of units in ending inventory. Answer is complete and correct. Ending inventory 590 units

Answer 1

Answers

• Requirement 1 and 2 already complete and correct.
• Requirement 3

	Ending Inventory
FIFO	$                47,790
LIFO	$                47,200
Weighted Average	$                46,120
Specific Identification	$                47,230

--Working for Specific Identification

Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	780	$                80.00	$                      62,400.00	780	$               80.00	$               62,400.00	0	$                 80.00	$                         -
Purchases:
10-Feb	490	$                77.00	$                      37,730.00	210	$               77.00	$               16,170.00	280	$                 77.00	$          21,560.00
13-Mar	290	$                62.00	$                      17,980.00	290	$               62.00	$               17,980.00	0	$                 62.00	$                         -
21-Aug	280	$                85.00	$                      23,800.00	140	$               85.00	$               11,900.00	140	$                 85.00	$          11,900.00
05-Sep	680	$                81.00	$                      55,080.00	510	$               81.00	$               41,310.00	170	$                 81.00	$          13,770.00
TOTAL	2520		$                    196,990.00	1930		$            149,760.00	590		$          47,230.00

• Requirement 4

	FIFO	LIFO	Weighted Average Method	Specific Identification
Sales Revenue	$ 212,300.00	$          212,300.00	$             212,300.00	$ 212,300.00
(-) Cost of Goods Sold	$ 149,200.00	$          149,790.00	$             150,868	$ 149,760.00
Gross Margin	$    63,100.00	$            62,510.00	$               61,432	$    62,540.00

--Other workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	780	$                80.00	$                      62,400.00	780	$               80.00	$               62,400.00	0	$                 80.00	$                         -
Purchases:
10-Feb	490	$                77.00	$                      37,730.00	490	$               77.00	$               37,730.00	0	$                 77.00	$                         -
13-Mar	290	$                62.00	$                      17,980.00	290	$               62.00	$               17,980.00	0	$                 62.00	$                         -
21-Aug	280	$                85.00	$                      23,800.00	280	$               85.00	$               23,800.00	0	$                 85.00	$                         -
05-Sep	680	$                81.00	$                      55,080.00	90	$               81.00	$                 7,290.00	590	$                 81.00	$          47,790.00
TOTAL	2520		$                    196,990.00	1930		$            149,200.00	590		$          47,790.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	780	$                80.00	$                      62,400.00	190	$               80.00	$               15,200.00	590	$                 80.00	$          47,200.00
Purchases:
10-Feb	490	$                77.00	$                      37,730.00	490	$               77.00	$               37,730.00	0	$                 77.00	$                         -
13-Mar	290	$                62.00	$                      17,980.00	290	$               62.00	$               17,980.00	0	$                 62.00	$                         -
21-Aug	280	$                85.00	$                      23,800.00	280	$               85.00	$               23,800.00	0	$                 85.00	$                         -
05-Sep	680	$                81.00	$                      55,080.00	680	$               81.00	$               55,080.00	0	$                 81.00	$                         -
TOTAL	2520		$                    196,990.00	1930		$            149,790.00	590		$          47,200.00