Question

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...

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

Date Activities Units Acquired at Cost Units Sold at Retail
Jan. 1 Beginning inventory 540 units @ $55 per unit
Feb. 10 Purchase 460 units @ $53 per unit
Mar. 13 Purchase 100 units @ $40 per unit
Mar. 15 Sales 745 units @ $80 per unit
Aug. 21 Purchase 170 units @ $61 per unit
Sept. 5 Purchase 430 units @ $54 per unit
Sept. 10 Sales 600 units @ $80 per unit
Totals 1,700 units 1,345 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 540 units from beginning inventory, 360 from the February 10 purchase, 100 from the March 13 purchase, 120 from the August 21 purchase, and 225 from the September 5 purchase.



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.)



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?

  • LIFO

  • Specific Identification

  • FIFO

  • Weighted Average

rev: 02_07_2019_QC_CS-156418, 11_15_2019_QC_CS-190617

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Gross Profit = Sales - Cost of goods sold

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales...
Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 760 units @ $70.00 per unit Feb. 10 Purchase 480 units @ $67.00 per unit Mar. 13 Purchase 280 units @ $52.00 per unit Mar. 15 Sales 880 units @ $100.00 per unit Aug. 21 Purchase 260 units @ $75.00 per unit Sept. 5 Purchase 660 units @ $71.00...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 240 units @ $53.80 per unit Mar. 5 Purchase 295 units @ $58.80 per unit Mar. 9 Sales 400 units @ $88.80 per unit Mar. 18 Purchase 155 units @ $63.80 per unit Mar. 25 Purchase 290 units @ $65.80 per unit Mar. 29 Sales 270 units @...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales...
Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 600 units @ $40 per unit Feb. 10 Purchase 400 units @ $37 per unit Mar. 13 Purchase 190 units @ $15 per unit Mar. 15 Sales 805 units @ $70 per unit Aug. 21 Purchase 190 units @ $45 per unit Sept. 5 Purchase 550 units @ $43...
[The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system....
[The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 70 units @ $50.40 per unit Mar. 5 Purchase 210 units @ $55.40 per unit Mar. 9 Sales 230 units @ $85.40 per unit Mar. 18 Purchase 70 units @ $60.40 per unit Mar. 25 Purchase 120 units @...
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual...
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 170 units @ $52.40 per unit Mar. 5 Purchase 260 units @ $57.40 per unit Mar. 9 Sales 330 units @ $87.40 per unit Mar. 18 Purchase 120 units @ $62.40 per unit Mar. 25 Purchase 220...
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic...
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 100 units @ $50.00 per unit Mar. 5 Purchase 400 units @ $55.00 per unit Mar. 9 Sales 420 units @ $85.00 per unit Mar. 18 Purchase 120 units @ $60.00 per unit Mar. 25 Purchase 200...
Required information [The following information applies to the questions displayed below.]    Warnerwoods Company uses a...
Required information [The following information applies to the questions displayed below.]    Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.    Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 100 units @ $50.00 per unit Mar. 5 Purchase 400 units @ $55.00 per unit Mar. 9 Sales 420 units @ $85.00 per unit Mar. 18 Purchase 120 units @ $60.00 per unit Mar. 25...
Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its...
Mist, Inc. uses a PERIODIC inventory system and has the following transactions for one of its inventory items during 2020: Beginning Inventory 108 units @ $51 per unit Purchases Purchase 1 on 3/11/20 60 units @ $53 per unit Purchase 2 on 10/18/20 109 units @ $55 per unit Sales Sale 1 on 3/15/20 100 units @ $78 per unit Sale 2 on 10/22/20 135 units @ $78 per unit All units sold on 3/15/20 were from beginning inventory. The...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales as follows : Units Cost per unit Begin Inventory 100 12 Jan 5 Sale 50 10 Purchase 70 16 15 Sale 25 25 Sale 35 Required: Prepare a schedule showing cost of goods sold and ending inventory using weighted average. Prepare a schedule showing cost of goods sold and ending inventory using First In First Out. Compute gross profit under for a and b....
Q3- A company that uses a perpetual inventory system made the following cash purchases and sales....
Q3- A company that uses a perpetual inventory system made the following cash purchases and sales. There was no beginning inventory. January 1: Purchased 30 units at SAR11 per unit February 5: Purchased 30 units at SAR 13 per unit March 16: Sold 50 Units for SAR 15 per unit A. Prepare general journal entries to record the March 16 sale using the: 1. FIFO inventory valuation method. 2. LIFO inventory valuation method. 3. Weighted average valuation method. B. What...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT