Question

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 Sales 740 units @ $70 per unit Totals 1,930 units 1,545 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 units 2. Compute the number of units in ending Inventory Ending inventory units antification For

Answer 1

1] $40.00 Date 1-Jan 10-Feb 13-Mar 21-Aug 5-Sep Compute Cost of Goods Available for Sale & Number of Units Available for Sale Particulars Units Rate Amount ($ Opening Stock 600 $24,000.00 Purchase 400 $37.00 $14,800.00 Purchase 190 $15.00 $2,850.00 Purchase 190 $45.00 $8,550.00 Purchase 550 $43.00 $23,650.00 Total 1930 $73,850.00 2) Compute the Number of Units in Ending Inventory Goods Purchased No. of Units Cost per unit No. of Units Cost of Goods Sold Cost per unit Cost of Goods Sold Date 1-Jan 10-Feb 400 $37.00 13-Mar 190 $15.00 $15.00 15-Mar 600 205 $40.00 $37.00 $24,000.00 $7.585.00 [Perpetual FIFO] Inventory Balance No. of Units Cost per unit Inventory Balance 600 $40.00 $24,000.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 190 $2,850.00 0 $0.00 $0.00 195 $37.00 $7,215.00 190 $15.00 $2,850.00 195 $37.00 $7,215.00 190 $15.00 $2.850.00 190 $45.00 $8,550.00 195 $37.00 $7,215.00 190 $15.00 $2,850.00 190 $45.00 $8,550.00 550 $43.00 $23,650.00 0 $0.00 $0.00 0 $0.00 $0.00 0 $0.00 $0.00 389 $43.00 $16,555.00 $16,555.00 21-Aug 190 $45.00 5-Sep 550 $43.00 10-Sep 195 190 190 165 $37.00 $15.00 $45.00 $43.00 $7,215.00 $2,850.00 $8,550.00 $7,095.00 $57,295.00 Total 2] Compute the Number of Units in Ending Inventory Goods Purchased No. of Units Cost per unit No. of Units Cost of Goods Sold Cost per unit Date 1-Jan 10-Feb 400 $37.00 13-Mar 190 $15,00 15-Mar 190 400 215 $15.00 $37.00 $40.00 [Perpetual LIFO] Inventory Balance Cost of Goods Sold No. of Units Cost per unit Inventory Balance 600 $40.00 $24,000.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 190 $15.00 $2,850.00 $2,850.00 0 $0.00 $0.00 $14,800.00 0 $0.00 $0.00 $8,600.00 385 $40.00 $15,400.00 385 $40.00 $15,400.00 190 $45.00 $8,550.00 385 $40.00 $15,400.00 190 $45.00 $8,550.00 550 $43.00 $23,650.00 $23,650.00 0 $0.00 $0.00 $8,550.00 $0.00 $0.00 385 $40.00 $15,400.00 $58,450.00 $15,400.00 21-Aug 190 $45.00 5-Sep 550 $43.00 10-Sep 550 190 $43.00 $45.00 Total 2] Compute the Number of Units in Ending Inventory Goods Purchased No. of Units Cost per unit No. of Units Cost of Goods Sold Cost per unit Cost of Goods Sold Date 1-Jan 10-Feb 400 $37.00 [Perpetual WAC) Inventory Balance No. of Units Cost per unit Inventory Balance 600 $40.00 $24,000.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 600 $40.00 $24,000.00 400 $37.00 $14,800.00 190 $15.00 $2,850.00 385 $35.00 $13,475.00 13-Mar 190 $15.00 15-Mar 805 $28,175.00 $35.00 $41,650.00 1190 Units 21-Aug 190 $45.00 5-Sep 550 $43.00 385 190 385 190 550 385 $35.00 $45.00 $35.00 $45.00 $43.00 $40.60 $13,475.00 $8,550.00 $13,475.00 $8,550.00 $23,650.00 $15,631.00 10-Sep 740 $30,044.00 $40.60 $45,675.00 1125 Units Total $58,219.00 $15,631.00 21 Compute the Number of Units in Ending Inventory Cost of Goods Available for Sale No. of Units Cost per unit No. of Units 600 $40,00 600 Cost of Goods Sold Cost per unit $40.00 (Perpetual Specific Identification) Inventory Balance Cost of Goods Sold No. of Units Cost per unit Inventory Balance $24,000.00 0 $0.00 $0.00 Date Beginning Purchased 10-Feb 13-Mar 21-Aug 5-Sep Total 400 190 190 550 1930 $37.00 $15.00 $45.00 $43.00 300 190 140 315 1545 $37.00 $15.00 $45.00 $43.00 $11,100.00 $2.850.00 $6,300.00 $13,545.00 $57,795.00 100 0 50 235 385 $37.00 $0.00 $45.00 $43.00 $3,700.00 $0.00 $2,250.00 $10,105.00 $16,055.00 4 Compute Gross Profit earned by Company for each of the Four Costing Methods Particulars FIFO LIFO WAC Specific Identification Sales $108,150.00 $108,150.00 $108,150.00 $108,150.00 COGS ($57,295.00) ($58,450.00) ($58,219.00) ($57,795.00) Gross Profit $50,855.00 $49,700.00 $49,931.00 $50,355.00 Less: 5) Answer: [Option - A] I.e. {FIFO Method)