(a) FIFO (b) LIFO (c) Weighted average (d) Specific identification Help Save & Ex 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. Round your final answers to the nearest whole dollar amount. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 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 FIFO O LIFO O Weighted Average O Specific Identification Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 Purchase March 15 August 21 Purchase September 10 Sales Totals September 5 Sales Purchase Units Acquired at Cost 650 units @$45.00 per unit 500 units @ $42.00 per unit 250 units @ $27.00 per unit 1,000 units @ $75.00 per unit 150 units 550 units @ $50.00 per unit @ $46.00 per unit 2,100 units 700 units 1,700 units @ $75.00 per unit Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale Number of units available for sale 2. Compute the number of units in ending inventory. Ending inventory units units 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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
(a) FIFO (b) LIFO (c) Weighted average (d) Specific identification Help Save & Ex 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. Round your final answers to the nearest whole dollar amount. FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0 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 FIFO O LIFO O Weighted Average O Specific Identification Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date January 1 Activities Beginning inventory February 10 Purchase March 13 Purchase March 15 August 21 Purchase September 10 Sales Totals September 5 Sales Purchase Units Acquired at Cost 650 units @$45.00 per unit 500 units @ $42.00 per unit 250 units @ $27.00 per unit 1,000 units @ $75.00 per unit 150 units 550 units @ $50.00 per unit @ $46.00 per unit 2,100 units 700 units 1,700 units @ $75.00 per unit Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale Number of units available for sale 2. Compute the number of units in ending inventory. Ending inventory units units 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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase. Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:(a) FIFO
(b) LIFO
(c) Weighted average
(d) Specific identification
Help
Save & Ex
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. Round your final answers to the nearest whole dollar amount.
FIFO
LIFO
Weighted
Average
Specific
Identification
Sales
Less: Cost of goods sold
Gross profit
$
0
$
0 $
0 $
0
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 FIFO
O LIFO
O Weighted Average
O Specific Identification
Transcribed Image Text:Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions.
Date
January 1
Activities
Beginning inventory
February 10
Purchase
March 13
Purchase
March 15
August 21
Purchase
September 10
Sales
Totals
September 5
Sales
Purchase
Units Acquired at Cost
650 units @$45.00 per unit
500 units @ $42.00 per unit
250 units @ $27.00 per unit
1,000 units
@ $75.00 per unit
150 units
550 units
@ $50.00 per unit
@ $46.00 per unit
2,100 units
700 units
1,700 units
@ $75.00 per unit
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
Cost of goods available for sale
Number of units available for sale
2. Compute the number of units in ending inventory.
Ending inventory
units
units
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 650 units from beginning inventory, 350 from the February 10 purchase, 250 from the
March 13 purchase, 100 from the August 21 purchase, and 350 from the September 5 purchase.
Note: Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education