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 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 units @ $36 per unit 750 units @ $75 per unit 1,510 units 1,850 units

Answer 1

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Montoure Company
Perpetual Specific Identification Method
Date	Cost of Goods available for sale	Cost of Goods sold	Inventory Balance
No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
1-Jan	660.00	35.00	23,100.00				660.00	35.00	23,100.00
10-Feb	330.00	32.00	10,560.00				660.00	35.00	23,100.00
							330.00	32.00	10,560.00
13-Mar	110.00	20.00	2,200.00				660.00	35.00	23,100.00
							330.00	32.00	10,560.00
							110.00	20.00	2,200.00
15-Mar				660.00	35.00	23,100.00	230.00	32.00	7,360.00
				100.00	32.00	3,200.00	110.00	20.00	2,200.00
21-Aug	180.00	40.00	7,200.00				230.00	32.00	7,360.00
							110.00	20.00	2,200.00
							180.00	40.00	7,200.00
5-Sep	570.00	36.00	20,520.00				230.00	32.00	7,360.00
							110.00	20.00	2,200.00
							180.00	40.00	7,200.00
							570.00	36.00	20,520.00
10-Sep				130.00	32.00	4,160.00	100.00	32.00	3,200.00
				110.00	20.00	2,200.00	50.00	40.00	2,000.00
				130.00	40.00	5,200.00	190.00	36.00	6,840.00
				380.00	36.00	13,680.00
Ending Inventory	1,850.00		63,580.00	1,510.00		51,540.00	340.00		12,040.00
So the cost assigned to ending inventory is $ 12,040.