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Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Units Acquired at Cost Units Sold at Retail Date January 1 February 10 March 13 March 15 August 21 September 5 September 10 Sales Totals Activities Beginning inventory Purchase Purchase Sales Purchase Purchase 630 units 460 units 230 units 130 units 530 units 1,980 units @ $45.00 per unit. @ $42.00 per unit @ $27.00 per unit. @ $50.00 per unit @ $46.00 per unit 920 units @ $75.00 per unit 660 units @ $75.00 per unit 1,580 units

Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Units Acquired at Cost Units Sold at Retail Date January 1 February 10 March 13 March 15 August 21 September 5 September 10 Sales Totals Activities Beginning inventory Purchase Purchase Sales Purchase Purchase 630 units 460 units 230 units 130 units 530 units 1,980 units @ $45.00 per unit. @ $42.00 per unit @ $27.00 per unit. @ $50.00 per unit @ $46.00 per unit 920 units @ $75.00 per unit 660 units @ $75.00 per unit 1,580 units

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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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 630 units from beginning inventory, 330 from the February 10 purchase, 230 from the March 13 purchase, 80 from the August 21 purchase, and 310 from the September 5 purchase. (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 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.) Sales Less: Cost of goods sold Gross profit Ending Inventory $ FIFO 0 $ LIFO Weighted Average 0 $ Specific Identification 0 $ 0
Transcribed Image Text: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 630 units from beginning inventory, 330 from the February 10 purchase, 230 from the March 13 purchase, 80 from the August 21 purchase, and 310 from the September 5 purchase. (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 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places. Round your final answers to the nearest whole dollar amount.) Sales Less: Cost of goods sold Gross profit Ending Inventory $ FIFO 0 $ LIFO Weighted Average 0 $ Specific Identification 0 $ 0
< Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities January 1. Beginning inventory February 10 Units Acquired at Cost @ $45.00 per unit Units Sold at Retail Purchase @ $42.00 per unit Purchase @ $27.00 per unit. March 13 March 15 August 21 September 5 September 10 Sales Purchase Purchase Sales. Totals 630 units 460 units 230 units 130 units 530 units 1,980 units @ $50.00 per unit @ $46.00 per unit 920 units @ $75.00 per unit 660 units @ $75.00 per unit 1,580 units
Transcribed Image Text:< Montoure Company uses a periodic inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities January 1. Beginning inventory February 10 Units Acquired at Cost @ $45.00 per unit Units Sold at Retail Purchase @ $42.00 per unit Purchase @ $27.00 per unit. March 13 March 15 August 21 September 5 September 10 Sales Purchase Purchase Sales. Totals 630 units 460 units 230 units 130 units 530 units 1,980 units @ $50.00 per unit @ $46.00 per unit 920 units @ $75.00 per unit 660 units @ $75.00 per unit 1,580 units
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