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 March 13 Purchase March 15 August 21 September 5 September 10 Purchase Sales Purchase Purchase Sales Totals 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 Required: 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. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 10 $ 0
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 March 13 Purchase March 15 August 21 September 5 September 10 Purchase Sales Purchase Purchase Sales Totals 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 Required: 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. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 10 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
March 13
Purchase
March 15
August 21
September 5
September 10
Purchase
Sales
Purchase
Purchase
Sales
Totals
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
Required:
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.
FIFO
LIFO
Weighted
Average
Specific
Identification
Sales
Less: Cost of goods sold
Gross profit
$
0 $
0
$
10
$
0
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