Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October:     Units Unit cost Total cost Balance on 10/1 15,000 P6 P90,000 Purchased on 10/5 20,000 P9 P180,000 Sold on 10/20 18,000     Purchased on 10/25 12,000 P7 P84,000   Based on the above, answer the following (Round unit cost to two decimal places):                                                                   What amount should Montero report as inventory on October 31 using the moving average method?   ________________ What amount should Montero report as cost of goods sold for October using the weighted average method? ________________ Under the FIFO method, what amount should Montero report as gross profit for October?                   ________________

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October:

 

 

Units

Unit cost

Total cost

Balance on 10/1

15,000

P6

P90,000

Purchased on 10/5

20,000

P9

P180,000

Sold on 10/20

18,000

 

 

Purchased on 10/25

12,000

P7

P84,000

 

Based on the above, answer the following (Round unit cost to two decimal places):                                                                  

  1. What amount should Montero report as inventory on October 31 using the moving average method?   ________________
  2. What amount should Montero report as cost of goods sold for October using the weighted average method? ________________
  3. Under the FIFO method, what amount should Montero report as gross profit for October?                   ________________ 
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