September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount. (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? O FIFO O LIFO O Weighted Average O Specific Identification Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Units Acquired at Cost 650 units $45.00 per unit Unita Sold at Retail Activities January 1 Beginning inventory February 10 March 13 Purchase March 15 August 21 September 5 September 10 Purchase Sales Purchase Purchase Sales Required: Totals 500 units @ $42.00 per unit 250 units @ $27.00 per unit 1,000 units @ $75.00 per unit 150 units 550 units @ $50.00 per unit @ $46.00 per unit 2,100 units 700 units @ $75.00 per unit 1,700 units 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 2. Compute the number of units in ending inventory. Ending inventory units 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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount. (a) FIFO (b) LIFO (c) Weighted average (d) Specific identification 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification 5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the highest bonus for the manager? O FIFO O LIFO O Weighted Average O Specific Identification Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Units Acquired at Cost 650 units $45.00 per unit Unita Sold at Retail Activities January 1 Beginning inventory February 10 March 13 Purchase March 15 August 21 September 5 September 10 Purchase Sales Purchase Purchase Sales Required: Totals 500 units @ $42.00 per unit 250 units @ $27.00 per unit 1,000 units @ $75.00 per unit 150 units 550 units @ $50.00 per unit @ $46.00 per unit 2,100 units 700 units @ $75.00 per unit 1,700 units 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 2. Compute the number of units in ending inventory. Ending inventory units 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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prove all 5 parts of answer
Transcribed Image Text:September 5 purchase.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
(a) FIFO
(b) LIFO
(c) Weighted average
(d) Specific identification
4. Compute gross profit earned by the company for each of the four costing methods.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
Sales
Less: Cost of goods sold
Gross profit
Weighted
FIFO
LIFO
Average
Specific
Identification
5. The company's manager earns a bonus based on a percent of gross profit. Which method of inventory costing produces the
highest bonus for the manager?
O FIFO
O LIFO
O Weighted Average
O Specific Identification
Transcribed Image Text:Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions.
Date
Units Acquired at Cost
650 units $45.00 per unit
Unita Sold at Retail
Activities
January 1
Beginning inventory
February 10
March 13
Purchase
March 15
August 21
September 5
September 10
Purchase
Sales
Purchase
Purchase
Sales
Required:
Totals
500 units @ $42.00 per unit
250 units
@ $27.00 per unit
1,000 units @ $75.00 per unit
150 units
550 units
@ $50.00 per unit
@ $46.00 per unit
2,100 units
700 units @ $75.00 per unit
1,700 units
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
2. Compute the number of units in ending inventory.
Ending inventory
units
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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the
March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
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