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   Required: Compute cost of goods available for sale and the number of units available for sale. Cost: I got 75170 Units:1930 Compute the number of units in ending inventory. I got 425 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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  

Required:

  1. Compute cost of goods available for sale and the number of units available for sale.

    Cost: I got 75170
    Units:1930
  2. Compute the number of units in ending inventory.

    I got 425
  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 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
Date
Compute the cost assigned to ending inventory using FIFO.
Note: Round your average cost per unit to 2 decimal places.
January 1
February 10
Total February 10
March 13
Total March 13
March 15
Total March 15
August 21
Total August 21
September 5
Total September 5
September 10
Weighted
Average
Total September 10
Totals
Goods Purchased
# of units
420 at
180 at
190 at
560 at
Cost per
unit
$38.00
$25.00
$ 45.00
Specific
Identification
$ 41.00
# of units
sold
Perpetual FIFO:
Cost of Goods Sold
580 at
175
at
at
at
245 at
180 at
190 at
135 at
Cost per Cost of Goods Sold
unit
$ 40.00
$ 38.00
$ 25.00
=
=
$ 40.00
$ 38.00 =
=
$ 25.00
$ 45.00
$ 41.00 =
=
$ 23,200.00
6,650.00
0.00
$ 29,850.00
9,310.00
4,500.00
8,550.00
5.535.00
$ 27,895.00
$ 57,745.00
$
< Perpetual FIFO
# of units
Inventory Balance
Cost per
unit
$ 40.00 =
$40.00 =
$ 38.00 =
580 at
580 at
420
TOTO
at
580 at
420 at
180 at
245 at
180 at
55 at
124 18
at
TOTO TO TO
245 at
180
190
at
at
at
245 at
180 at
190 at
560 at
at
at
at
at
425 at
$ 40.00 =
$ 38.00 =
$25.00 =
$ 40.00 =
$ 38.00 =
$ 25.00-
$ 40.00 =
$ 38.00 =
$ 25.00 =
$ 45.00 =
$ 40.00 =
$38.00 =
$ 25.00 =
$ 45.00
$ 41.00 =
=
$ 40.00 =
$38.00 =
$ 25.00 =
$ 45.00 =
$ 41.00
Perpetual LIFO >
=
Inventory
Balance
$ 23,200.00
$ 23,200.00
15,960.00
$ 39,160.00
$ 23,200.00
15,960.00
4,500.00
$ 43,660.00
$ 9,800.00
6,840.00
1,375.00
$ 18,015.00
$
0.00
9,310.00
4,500.00
8,550.00
$ 22,360.00
$ 0.00
9,310.00
4,500.00
8,550.00
22,960.00
$ 45,320.00
$
0.00
0.00
0.00
0.00
17,425.00
$ 17,425.00
$ 17,425.00
Transcribed Image Text:Perpetual FIFO Perpetual LIFO Date Compute the cost assigned to ending inventory using FIFO. Note: Round your average cost per unit to 2 decimal places. January 1 February 10 Total February 10 March 13 Total March 13 March 15 Total March 15 August 21 Total August 21 September 5 Total September 5 September 10 Weighted Average Total September 10 Totals Goods Purchased # of units 420 at 180 at 190 at 560 at Cost per unit $38.00 $25.00 $ 45.00 Specific Identification $ 41.00 # of units sold Perpetual FIFO: Cost of Goods Sold 580 at 175 at at at 245 at 180 at 190 at 135 at Cost per Cost of Goods Sold unit $ 40.00 $ 38.00 $ 25.00 = = $ 40.00 $ 38.00 = = $ 25.00 $ 45.00 $ 41.00 = = $ 23,200.00 6,650.00 0.00 $ 29,850.00 9,310.00 4,500.00 8,550.00 5.535.00 $ 27,895.00 $ 57,745.00 $ < Perpetual FIFO # of units Inventory Balance Cost per unit $ 40.00 = $40.00 = $ 38.00 = 580 at 580 at 420 TOTO at 580 at 420 at 180 at 245 at 180 at 55 at 124 18 at TOTO TO TO 245 at 180 190 at at at 245 at 180 at 190 at 560 at at at at at 425 at $ 40.00 = $ 38.00 = $25.00 = $ 40.00 = $ 38.00 = $ 25.00- $ 40.00 = $ 38.00 = $ 25.00 = $ 45.00 = $ 40.00 = $38.00 = $ 25.00 = $ 45.00 $ 41.00 = = $ 40.00 = $38.00 = $ 25.00 = $ 45.00 = $ 41.00 Perpetual LIFO > = Inventory Balance $ 23,200.00 $ 23,200.00 15,960.00 $ 39,160.00 $ 23,200.00 15,960.00 4,500.00 $ 43,660.00 $ 9,800.00 6,840.00 1,375.00 $ 18,015.00 $ 0.00 9,310.00 4,500.00 8,550.00 $ 22,360.00 $ 0.00 9,310.00 4,500.00 8,550.00 22,960.00 $ 45,320.00 $ 0.00 0.00 0.00 0.00 17,425.00 $ 17,425.00 $ 17,425.00
Perpetual FIFO Perpetual LIFO
Date
Compute the cost assigned to ending inventory using FIFO.
Note: Round your average cost per unit to 2 decimal places.
January 1
February 10
Total February 10
March 13
Total March 13
March 15
Total March 15
August 21
Total August 21
September 5
Total September 5
September 10
Weighted
Average
Total September 10
Totals
Goods Purchased
# of units
420 at
180 at
190 at
560 at
Cost per
unit
$38.00
$25.00
$ 45.00
Specific
Identification
$ 41.00
# of units
sold
Perpetual FIFO:
Cost of Goods Sold
580 at
175
at
at
at
245 at
180 at
190 at
135 at
Cost per Cost of Goods Sold
unit
$ 40.00
$ 38.00
$ 25.00
=
=
$ 40.00
$ 38.00 =
=
$ 25.00
$ 45.00
$ 41.00 =
=
$ 23,200.00
6,650.00
0.00
$ 29,850.00
9,310.00
4,500.00
8,550.00
5.535.00
$ 27,895.00
$ 57,745.00
$
< Perpetual FIFO
# of units
Inventory Balance
Cost per
unit
$ 40.00 =
$40.00 =
$ 38.00 =
580 at
580 at
420
TOTO
at
580 at
420 at
180 at
245 at
180 at
55 at
124 18
at
TOTO TO TO
245 at
180
190
at
at
at
245 at
180 at
190 at
560 at
at
at
at
at
425 at
$ 40.00 =
$ 38.00 =
$25.00 =
$ 40.00 =
$ 38.00 =
$ 25.00-
$ 40.00 =
$ 38.00 =
$ 25.00 =
$ 45.00 =
$ 40.00 =
$38.00 =
$ 25.00 =
$ 45.00
$ 41.00 =
=
$ 40.00 =
$38.00 =
$ 25.00 =
$ 45.00 =
$ 41.00
Perpetual LIFO >
=
Inventory
Balance
$ 23,200.00
$ 23,200.00
15,960.00
$ 39,160.00
$ 23,200.00
15,960.00
4,500.00
$ 43,660.00
$ 9,800.00
6,840.00
1,375.00
$ 18,015.00
$
0.00
9,310.00
4,500.00
8,550.00
$ 22,360.00
$ 0.00
9,310.00
4,500.00
8,550.00
22,960.00
$ 45,320.00
$
0.00
0.00
0.00
0.00
17,425.00
$ 17,425.00
$ 17,425.00
Transcribed Image Text:Perpetual FIFO Perpetual LIFO Date Compute the cost assigned to ending inventory using FIFO. Note: Round your average cost per unit to 2 decimal places. January 1 February 10 Total February 10 March 13 Total March 13 March 15 Total March 15 August 21 Total August 21 September 5 Total September 5 September 10 Weighted Average Total September 10 Totals Goods Purchased # of units 420 at 180 at 190 at 560 at Cost per unit $38.00 $25.00 $ 45.00 Specific Identification $ 41.00 # of units sold Perpetual FIFO: Cost of Goods Sold 580 at 175 at at at 245 at 180 at 190 at 135 at Cost per Cost of Goods Sold unit $ 40.00 $ 38.00 $ 25.00 = = $ 40.00 $ 38.00 = = $ 25.00 $ 45.00 $ 41.00 = = $ 23,200.00 6,650.00 0.00 $ 29,850.00 9,310.00 4,500.00 8,550.00 5.535.00 $ 27,895.00 $ 57,745.00 $ < Perpetual FIFO # of units Inventory Balance Cost per unit $ 40.00 = $40.00 = $ 38.00 = 580 at 580 at 420 TOTO at 580 at 420 at 180 at 245 at 180 at 55 at 124 18 at TOTO TO TO 245 at 180 190 at at at 245 at 180 at 190 at 560 at at at at at 425 at $ 40.00 = $ 38.00 = $25.00 = $ 40.00 = $ 38.00 = $ 25.00- $ 40.00 = $ 38.00 = $ 25.00 = $ 45.00 = $ 40.00 = $38.00 = $ 25.00 = $ 45.00 $ 41.00 = = $ 40.00 = $38.00 = $ 25.00 = $ 45.00 = $ 41.00 Perpetual LIFO > = Inventory Balance $ 23,200.00 $ 23,200.00 15,960.00 $ 39,160.00 $ 23,200.00 15,960.00 4,500.00 $ 43,660.00 $ 9,800.00 6,840.00 1,375.00 $ 18,015.00 $ 0.00 9,310.00 4,500.00 8,550.00 $ 22,360.00 $ 0.00 9,310.00 4,500.00 8,550.00 22,960.00 $ 45,320.00 $ 0.00 0.00 0.00 0.00 17,425.00 $ 17,425.00 $ 17,425.00
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