Question

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. 10 Sales 640 units @ $85 per unit Totals 1,600 units 1,290 units s 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 units 2. Compute the number of units in ending inventory. Ending inventory units

Answer 1

3) PERPETUAL FIFO Goods purchased # of units Cost per unit #of units sold Cost of goods sold Cost per unit cost of goods sold #of units Date Jan.1 Feb.10 320 36 Mar.13 100 24 Mar.15 21600 540 110 40 36 Inventory balance Cost per unit Inventory balance 540 40 21600 540 40 21600 320 36 11520 540 40 21600 320 36 11520 100 24 2400 210 36 7560 100 24 2400 210 36 7560 100 24 2400 120 45 5400 210 36 7560 100 24 2400 120 45 5400 520 41 21320 310 41 12710 3960 Aug. 21 120 45 Sep.5 520 41 Sep.10 85 210 100 120 17850 2400 24 45 5400 210 8610 TOTALS 59820 CS Scanned with CamScanner

PERPETUAL LIFO Goods purchased # of units Cost per unit #of units sold Cost of goods sold Cost per unit Cost of goods sold # of units Date Jan.1 Feb.10 Inventory balance Cost per unit Inventory balance 540 40 21600 540 40 21600 320 36 11520 320 36 Mar.13 100 24 540 40 21600 320 36 11520 100 24 2400 Mar.15 100 24 310 40 12400 2400 11520 320 36 230 40 9200 Aug.21 120 45 310 40 12400 5400 120 45 Sep.5 520 41 12400 310 120 40 45 5400 21320 520 41 41 21320 310 Sep.10 40 12400 520 120 45 5400 TOTALS 49840 CS Scanned with CamScanner