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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.

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 660 units @ $55 per unit
Feb. 10 Purchase 330 units @ $52 per unit
Mar. 13 Purchase 110 units @ $40 per unit
Mar. 15 Sales 780 units @ $75 per unit
Aug. 21 Purchase 140 units @ $60 per unit
Sept. 5 Purchase 420 units @ $56 per unit
Sept. 10 Sales 560 units @ $75 per unit
Totals 1,660 units 1,340 units
Cost of goods available for sale $89,780
Number of units available for sale 1,660 units
Ending inventory 320 units
Ending Inventory
(a) FIFO $17,920
(b) LIFO $17,600
(c) Weighted average $17,728
(d) Specific identification $17,720

Required:

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.)

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Answer #1
FIFO LIFO Average Specific
Cost of goods sold:
Cost of goods savailable for sale 89780 89780 89780 89780
Less: Ending inventory 17920 17600 17728 17720
Cost of goods ssold 71860 72180 72052 72060
Sales revenue (1340*75) 100500 100500 100500 100500
Less: Cost of goodssold 71860 72180 72052 72060
Gross profit 28640 28320 28448 28440
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