Problem
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions.
|
Date
|
Activities
|
Units Acquired at Cost
|
Units Sold at Retail
|
|
Jan.
|
1
|
Beginning inventory
|
660
|
units
|
@
|
$
|
60
|
/unit
|
|
|
|
|
|
|
|
|
|
Feb.
|
10
|
Purchase
|
330
|
units
|
@
|
$
|
57
|
/unit
|
|
|
|
|
|
|
|
|
|
Mar.
|
13
|
Purchase
|
110
|
units
|
@
|
$
|
45
|
/unit
|
|
|
|
|
|
|
|
|
|
Mar.
|
15
|
Sales
|
|
|
|
|
|
|
|
715
|
units
|
@
|
$
|
70
|
/unit
|
|
|
Aug.
|
21
|
Purchase
|
160
|
units
|
@
|
$
|
65
|
/unit
|
|
|
|
|
|
|
|
|
|
Sept.
|
5
|
Purchase
|
570
|
units
|
@
|
$
|
61
|
/unit
|
|
|
|
|
|
|
|
|
|
Sept.
|
10
|
Sales
|
|
|
|
|
|
|
|
730
|
units
|
@
|
$
|
70
|
/unit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
1,830
|
units
|
|
|
|
|
|
1,445
|
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, (c) weighted average, and (d) specific identification. For specific identification units sold consist of 660 units from beginning inventory, 230 from the February 10 purchase, 110 from the March 13 purchase, 110 from the August 21 purchase, and 335 from the September 5 purchase.
4. Compute gross profit earned by the company for each of the four costing methods.