### Montoure Company's Perpetual Inventory System**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 ||----------------|---------------------|----------------------------|---------------------------------------|| January 1 | Beginning Inventory | 600 units @ $45 per unit | || February 10 | Purchase | 400 units @ $42 per unit | || March 13 | Purchase | 200 units @ $27 per unit | || March 15 | Sales | | 800 units @ $75 per unit || August 21 | Purchase | 100 units @ $50 per unit | || September 5 | Purchase | 500 units @ $46 per unit | || September 10 | Sales | | 600 units @ $75 per unit || **Totals** | | **1,800 units** | **1,400 units** |#### Required:1. **Compute the cost of goods available for sale and the number of units available for sale.** - **Cost of goods available for sale:** [Input Field] - **Number of units available for sale:** [Input Field] units2. **Compute the number of units in ending inventory.** - **Ending inventory:** [Input Field] units **Inventory Valuation Methods - Educational Material**---**Objective:**Compute the cost assigned to ending inventory using the following methods:(a) FIFO (First-In, First-Out)(b) LIFO (Last-In, First-Out)(c) Weighted Average(d) Specific Identification *Note: 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.*---**Task:**Complete the cost assignment by entering your answers in the provided tabs.**Interactive Tabs:**1. Perpetual FIFO2. Perpetual LIFO3. Weighted Average4. Specific Identification**Instruction:**Compute the cost assigned to ending inventory using FIFO.*Note: Round your average cost per unit to 2 decimal places.*### Detailed Inventory Calculation Table:#### Perpetual FIFO:| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance ||------------|-----------------------------|------------------------------|--------------------------------------------|| | # of units | Cost per unit | # of units | Cost per unit | # of units | Cost per unit | Inventory Balance || January 1 | | | | | 600 | $45.00 | $27,000.00 || February 10| | | | | | | || Total | | | | | | | || March 13 | | | | | | | || Total | | | | | | | || March 15 | | | | | | | || Total | | | | | | | || August 21 | | | | | | | || Total | | | | | | | || September 5| | | | | | | || Total | | | | | | | || September 10| | | | | | |

The cost which has been incurred on goods that are available for sale is known as cost of goods…

Answered: 1. Compute cost of goods available for…

Business

Accounting

1. Compute cost of goods available for sale and the number of units available for sale.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Montoure Company's Perpetual Inventory System

**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 |
|----------------|---------------------|----------------------------|---------------------------------------|
| January 1 | Beginning Inventory | 600 units @ $45 per unit | |
| February 10 | Purchase | 400 units @ $42 per unit | |
| March 13 | Purchase | 200 units @ $27 per unit | |
| March 15 | Sales | | 800 units @ $75 per unit |
| August 21 | Purchase | 100 units @ $50 per unit | |
| September 5 | Purchase | 500 units @ $46 per unit | |
| September 10 | Sales | | 600 units @ $75 per unit |
| **Totals** | | **1,800 units** | **1,400 units** |

#### Required:

1. **Compute the cost of goods available for sale and the number of units available for sale.**

- **Cost of goods available for sale:** [Input Field]
- **Number of units available for sale:** [Input Field] units

2. **Compute the number of units in ending inventory.**

- **Ending inventory:** [Input Field] units

**Inventory Valuation Methods - Educational Material**

---

**Objective:**
Compute the cost assigned to ending inventory using the following methods:
(a) FIFO (First-In, First-Out)
(b) LIFO (Last-In, First-Out)
(c) Weighted Average
(d) Specific Identification

*Note: 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.*

---

**Task:**
Complete the cost assignment by entering your answers in the provided tabs.

**Interactive Tabs:**
1. Perpetual FIFO
2. Perpetual LIFO
3. Weighted Average
4. Specific Identification

**Instruction:**
Compute the cost assigned to ending inventory using FIFO.
*Note: Round your average cost per unit to 2 decimal places.*

### Detailed Inventory Calculation Table:

#### Perpetual FIFO:

| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
|------------|-----------------------------|------------------------------|--------------------------------------------|
| | # of units | Cost per unit | # of units | Cost per unit | # of units | Cost per unit | Inventory Balance |
| January 1 | | | | | 600 | $45.00 | $27,000.00 |
| February 10| | | | | | | |
| Total | | | | | | | |
| March 13 | | | | | | | |
| Total | | | | | | | |
| March 15 | | | | | | | |
| Total | | | | | | | |
| August 21 | | | | | | | |
| Total | | | | | | | |
| September 5| | | | | | | |
| Total | | | | | | | |
| September 10| | | | | | |

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