Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Units Acquired at Cost 600 units @ $45 per unit 400 units @ $42 per unit 200 units @ $27 per unit Date January 1 February 10 March 13 March 15 August 21 Activities Beginning inventory Purchase Purchase Sales Purchase Purchase September 5 September 10 Sales Totals Cost of goods available for sale Number of units available for sale Ending inventory 100 units @ $50 per unit 500 units @ $46 per unit 1,800 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. units units 800 units @ $75 per unit 600 units @ $75 per unit 1,400 units 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 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Units Sold at Retail Units Acquired at Cost 600 units @ $45 per unit 400 units @ $42 per unit 200 units @ $27 per unit Date January 1 February 10 March 13 March 15 August 21 Activities Beginning inventory Purchase Purchase Sales Purchase Purchase September 5 September 10 Sales Totals Cost of goods available for sale Number of units available for sale Ending inventory 100 units @ $50 per unit 500 units @ $46 per unit 1,800 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. units units 800 units @ $75 per unit 600 units @ $75 per unit 1,400 units 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 600 units from beginning inventory, 300 from the February 10 purchase, 200 from the March 13 purchase, 50 from the August 21 purchase, and 250 from the September 5 purchase.)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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If you could please help me figure out how to fill in FIFO, LIFO, and Weighted Average it would be super appreciated I have no clue where to even start with this one but once I see how it’s done my hopes are I’ll be able to understand how to do it which is what usually happens lol thank you so much I understand specific Identification so I don’t need any help with understanding how to do that but I do not know how to get the sales in part 4 for Specific ID/for all of them. I know it’s a lot but I’m so confused so it would be so helpful thank you! If that’s too much to do for one problem even just doing some of it would be of help for me to understand how to come to a solution thank you.
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