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Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 March 15 August 21 September 5 Purchase Sales Purchase Purchase September 10 Sales Total's Units Acquired at Cost 630 units @ $50 per unit 370 units @ $46 per unit 100 units @ $34 per unit 160 units @ $55 per unit 520 units @ $51 per unit 1,780 units Units Sold at Retail 740 units @ $75 per unit 680 units @ $75 per unit 1,420 units 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. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted 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 Specific Identification O FIFO OLIFO O Weighted Average

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 March 15 August 21 September 5 Purchase Sales Purchase Purchase September 10 Sales Total's Units Acquired at Cost 630 units @ $50 per unit 370 units @ $46 per unit 100 units @ $34 per unit 160 units @ $55 per unit 520 units @ $51 per unit 1,780 units Units Sold at Retail 740 units @ $75 per unit 680 units @ $75 per unit 1,420 units 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. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted 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 Specific Identification O FIFO OLIFO O Weighted Average

FINANCIAL ACCOUNTING
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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Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 March 15 August 21 September 5 Purchase Sales Purchase Purchase September 10 Sales Total's Units Acquired at Cost 630 units @ $50 per unit 370 units @ $46 per unit 100 units @ $34 per unit 160 units @ $55 per unit 520 units @ $51 per unit 1,780 units Units Sold at Retail 740 units @ $75 per unit 680 units @ $75 per unit 1,420 units
Transcribed Image Text:Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 March 15 August 21 September 5 Purchase Sales Purchase Purchase September 10 Sales Total's Units Acquired at Cost 630 units @ $50 per unit 370 units @ $46 per unit 100 units @ $34 per unit 160 units @ $55 per unit 520 units @ $51 per unit 1,780 units Units Sold at Retail 740 units @ $75 per unit 680 units @ $75 per unit 1,420 units
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. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted 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 Specific Identification O FIFO OLIFO O Weighted Average
Transcribed Image Text: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. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted 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 Specific Identification O FIFO OLIFO O Weighted Average
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