Montoure company uses a perpetual inventory system

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Montoure Company uses a perpetual inventory system. It entered into the following calendar year 2013 purchases and sales transactions. (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.)

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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, 

(d) Specific identification. (Round all amounts to dollars and cents.)

4. Compute gross profit earned by the company for each of the four costing methods in part 3. Analysis Component: 

5. If the company's manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likelyprefer?

Reference no: EM13905081

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