Please help with this part. When it comes to accounting I am lost. if you can give a quick how you got to it so that I can understand better I would appreciate it. Item 7Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions.DateActivitiesUnits Acquired at CostUnits Sold at RetailJanuary 1Beginning inventory580units@ $40 per unit February 10Purchase420units@ $38 per unit March 13Purchase180units@ $25 per unit March 15Sales 755units@ $70 per unitAugust 21Purchase190units@ $45 per unit September 5Purchase560units@ $41 per unit September 10Sales 750units@ $70 per unit Totals1,930units 1,505units 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 580 units from beginning inventory, 320 from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the September 5 purchase.) Perpetual FIFO Perpetual LIFOJanuary 1Compute the cost assigned to ending inventory using weighted average.Note: Round your average cost per unit to 2 decimal places.DateFebruary 10Average February 10March 13Average March 13March 15August 21Average August 21WeightedAverageSeptember 5Average September 5September 10TotalsSpecificIdentificationGoods Purchased# of units420 atCost perunit$38.00180 at $25.00Weighted Average Perpetual:Cost of Goods Sold# of unitssoldCost per Cost of Goods Soldunit< Perpetual LIFO$0.00# of unitsInventory BalanceCost perunit580 at580 atat580 at$ 40.00 =$ 40.00 =$ 38.00$ 40.00 =580 at$ 40.00 =420 at $25.00 -1,000 at$ 25.00 =Specific Identification >InventoryBalance$ 23,200.00$ 23,200.00$ 23,200.00$ 23,200.0010,500.00$ 33,700.00 Perpetual FIFO Perpetual LIFOCompute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of 580 units from beginning inventory, 320from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the September 5 purchase.)DateJanuary 1February 10March 13August 21September 5TotalSalesLess: Cost of goods soldGross profitWeightedAverageGoods Available for Sale# of units$0O Weighted AverageO LIFOO FIFOO Specific IdentificationSpecificIdentificationCost perunitFIFOCost of GoodsAvailable forSaleS0 SSSpecific Identification000000LIFOCost of Goods Sold# of unitssold< Weighted AverageWeightedAverage0 $04. Compute gross profit earned by the company for each of the four costing methods.Note: Round your average cost per unit to 2 decimal places.Cost perunit$Cost ofGoods Sold0.00 S0.000.000.000 SSSpecificIdentification000000# of unitsin endinginventoryEnding InventoryCost perunitSpecific Identification >ol0.000.000.000.000.00EndingInventoryS5. The company's manager earns a bonus based on a percent of gross profit. Which method of Inventory costing produces thehighest bonus for the manager?< PrevM0000007 of 7Next >

Name: Please help with this part. When it comes to accounting I am lost. if
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Please help with this part. When it comes to accounting I am lost. if you can give a quick how you got to it so that I can understand better I would appreciate it. Item 7Montoure Company uses a perpetual inventory system. It entered into the followin

Date# of UnitsCost perunitCost ofgoodsavailablefor saleJan. 1580at$40.00$23,200.00Feb.…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 41BE: ( Appendix 6B) Inventory Costing Methods: Periodic Inventory Systems. Refer to the information for...

See similar textbooks

Item 7

Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
January 1	Beginning inventory	580	units	@ $40 per unit
February 10	Purchase	420	units	@ $38 per unit
March 13	Purchase	180	units	@ $25 per unit
March 15	Sales				755	units	@ $70 per unit
August 21	Purchase	190	units	@ $45 per unit
September 5	Purchase	560	units	@ $41 per unit
September 10	Sales				750	units	@ $70 per unit
	Totals	1,930	units		1,505	units

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 580 units from beginning inventory, 320 from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the September 5 purchase.)

Perpetual FIFO Perpetual LIFO
January 1
Compute the cost assigned to ending inventory using weighted average.
Note: Round your average cost per unit to 2 decimal places.
Date
February 10
Average February 10
March 13
Average March 13
March 15
August 21
Average August 21
Weighted
Average
September 5
Average September 5
September 10
Totals
Specific
Identification
Goods Purchased
# of units
420 at
Cost per
unit
$38.00
180 at $25.00
Weighted Average Perpetual:
Cost of Goods Sold
# of units
sold
Cost per Cost of Goods Sold
unit
< Perpetual LIFO
$
0.00
# of units
Inventory Balance
Cost per
unit
580 at
580 at
at
580 at
$ 40.00 =
$ 40.00 =
$ 38.00
$ 40.00 =
580 at
$ 40.00 =
420 at $25.00 -
1,000 at
$ 25.00 =
Specific Identification >
Inventory
Balance
$ 23,200.00
$ 23,200.00
$ 23,200.00
$ 23,200.00
10,500.00
$ 33,700.00

Perpetual FIFO Perpetual LIFO
Compute the cost assigned to ending inventory using specific identification. (For specific identification, units sold consist of 580 units from beginning inventory, 320
from the February 10 purchase, 180 from the March 13 purchase, 140 from the August 21 purchase, and 285 from the September 5 purchase.)
Date
January 1
February 10
March 13
August 21
September 5
Total
Sales
Less: Cost of goods sold
Gross profit
Weighted
Average
Goods Available for Sale
# of units
$
0
O Weighted Average
O LIFO
O FIFO
O Specific Identification
Specific
Identification
Cost per
unit
FIFO
Cost of Goods
Available for
Sale
S
0 S
S
Specific Identification
0
0
0
0
0
0
LIFO
Cost of Goods Sold
# of units
sold
< Weighted Average
Weighted
Average
0 $
0
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.
Cost per
unit
$
Cost of
Goods Sold
0.00 S
0.00
0.00
0.00
0 S
S
Specific
Identification
0
0
0
0
0
0
# of units
in ending
inventory
Ending Inventory
Cost per
unit
Specific Identification >
ol
0.00
0.00
0.00
0.00
0.00
Ending
Inventory
S
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?
< Prev
M
0
0
0
0
0
0
7 of 7
Next >

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 7 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.