Question

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Activities Units Sold at Retail Date Dan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase Mar. 15 Sales Aug. 21 Purchase Sept. 5 Purchase Sept. 10 Sales Units Acquired at Cost 700 units$50 per unit 350 units@$44 per unit 150 units $32 per unit 705 units $80 per unit 190 units $55 per unit 540 units $51 per unit 730 units $80 per unit 1,435 units Totals 1,930 units Required: 1. Compute cost of goods available for sale and the number of units available for sale 2. Compute the number of units in ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, () weighted average, and (d) specific identification. For specific identification, units sold consist of 700 units from beginning inventory, 250 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 195 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) 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.) Complete this question by entering your answers in the tabs below Required Required 2 Required 3Required 4 Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification For specific identification, units sold consist of 700 units from beginning inventory, 250 from the February 10 purchase, 150 from the March 13 purchase, 140 from the August 21 purchase, and 195 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Show less Ending Inventory 25,245 24,750 (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification

I was hoping you could show the steps?

Answer 1

	FIFO
			Purchase			Sale			CLOSING INVENTORY
	Date	Description	Quantity	Rate	Amount	Quantity	Rate	Cost of goodssold	Quantity	Rate	Amount
	Jan.1	Beginning Inventory							700	$50	$35,000
	Feb.10	Purchase	350	$44	$15,400				700	$50	$35,000
									350	$44	$15,400
	March.13	Purchase	150	$32	$4,800				700	$50	$35,000
									350	$44	$15,400
									150	$32	$4,800
	March.15	Sales				700	$50	$35,000	345	$44	$15,180
						5	$44	$220	150	$32	$4,800
	Aug.21	Purchase	190	$55	$10,450				345	$44	$15,180
									150	$32	$4,800
									190	$55	$10,450
	Sep.5	Purchase	540	$51	$27,540				345	$44	$15,180
									150	$32	$4,800
									190	$55	$10,450
									540	$51	$27,540
	Sep.10	Sales				345	$44	$15,180
						150	$32	$4,800
						190	$55	$10,450
						45	$51	$2,295	495	$51	$25,245
		TOTAL	1230		$58,190	1435		$67,945
		Number of units in Ending Inventory	495
		Cost assigned to ending Inventory	$25,245
		Sales Price	$114,800	(1435*80)
		Cost of goods sold	$67,945
		Gross Profit	$46,855
												LIFO CLOSING INVENTORY Purchasee Cost of goodssold Quantity Rate Amount Quantity Rate Amount Quantity Rate Date Jan. 1 Feb.10 Description Beginning Inventor Purchasee 700 700 350 700 350 150 495 $50 $35,000 $50 $35,000 $44$15,400 $50 $35,000 $44$15,400 $32$4,800 $50 $24,750 350 $44 $15,400 150 $32 $4,800 March.13 Purchase 150 350 205 $32$4,800 $44$15,400 $50 $10,250 March.15 Sales $50 $24,750 $55 $10,450 495 Aug.21 Purchasee 190 $55 $10,450 190 495 190 540 $50 $24,750 $55$10,450 $51$27,540 Purchasee 540 $51 $27,540 Sep.5 540 190 $51$27,540 $55 $10,450 Sep.10 Sales 495 $50 $24,750 $58,1901435 $68,440 TOTAL 1230 LIFO Number of units in Ending Inventor Cost assigned to ending Inventory 495 $24,750 $114,800 (1435*80) Sales Price Cost of goods sold Gross Profit $68,440 $46,360 WEIGHTED AVERAGE Purchase Sale CLOSING INVENTORY Cost of Date Jan.1 Feb.10 March.13 Purchase March. 15 Sales Aug.21 Sep.5 Sep.10 goodssold Quantity Rate Description Beginning Inventor Purchasee Quantity Rate Amount Quantity Rate Amount 700 1050 $48.00 $50,400 1200 $46.00 $55,200 495$46.00 $22,770 685 $48.50 $33,220 1225 $49.60 $60,760 495$49.60 $24,552.00 $50$35,000 350 150 44 $15,400 $32 $4,800 705 $46 $32,430 $55 $10,450 540 $51 $27,540 Purchasee Purchasee Sales TOTAL 190 730 $49.60 $36,208 $68,638 1230 $58,1901435 WEIGHTED AVERAGE ! Purchase Sale CLOSING INVENTORY Cost of Description Beginning Inventor Purchasee goodssold Quantity Rate Amount Date Jan.1 Feb.10 March. 13 Purchase March.15 Sales Aug.21 Sep.5 Sep.10 Quantity Rate Amount Quantity Rate 700 1050$48.00 $50,400 1200 $46.00 $55,200 495 $46.00$22,770 685 $48.50 $33,220 1225 $49.60 $60,760 495$49.60 $24,552.00 $50 $35,000 350 $44 $15,400 150 $32 $4,800 705 $46 $32,430 190 $55 $10,450 Purchasee Purchasee Sales TOTAL 540$51 $27,540 730 $49.60 $36,208 $68,638 1230 $58,1901435 WEIGHTED AVERAGE Number of units in Ending Inventor Cost assigned to ending Inventor 495 $24,552 $114,800 (1435*80) Sales Price Cost of goods sold Gross Profit $68,638 $46,162 SPECIFICIDENTIFICATTON Purchase Sale CLOSING INVENTORY Cost of Date goodssold Quantity Rate Description Beginning Inventor Purchasee Quantity Rate Amount Quantity Rate Amount 700 $50 $35,000 $50$35,000 $44$15,400 $50$35,000 $44$15,400 $32 $4,800 44 $15,180 $32 $4,800 44 $15,180 $32 $4,800 $55 $10,450 44 $15,180 $32 $4,800 $55 $10,450 $51$27,540 $44$4,400 an 350$44 $15,400 700 350 700 350 150 345 150 345 150 190 345 150 190 540 100 Feb.10 March. 13 Purchase 150 $32 $4,800 700 $50 $35,000 $44 March.15 Sales $220 Aug.21 Purchasee 190$55 $10,450 Sep.5 Purchasee 540$51 $27,540 245 150 140 195 $58,1901435 44 $10,780 $32$4,800 $55$7,700 $51$9,945 $68,445 Sep.10 Sales 50 345 495 $55$2,750 $51$17,595 $24,745 TOTAL 1230 SPECIFICIDENTIFICATION Number of units in Ending Inventor Cost assigned to ending Inventory 咆 495 $24,745 $114,800 (1435*80) Sales Price Cost of goods sold$68,445 Gross Profit $46,355