**Problem 6-3A Perpetual: Alternative cost flows LO P1**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 ||------------|-------------------------|---------------------------|----------------------------|| Jan. 1 | Beginning inventory | 660 units @ $60 per unit | || Feb. 10 | Purchase | 330 units @ $57 per unit | || Mar. 13 | Purchase | 110 units @ $45 per unit | || Mar. 15 | Sales | | 715 units @ $70 per unit || Aug. 21 | Purchase | 160 units @ $65 per unit | || Sept. 5 | Purchase | 570 units @ $61 per unit | || Sept. 10 | Sales | | 730 units @ $70 per unit || | **Totals** | **1,830 units** | **1,445 units** |**Required:**1. Compute cost of goods available for sale and the number of units available for sale.- **Cost of goods available for sale:** $20,133 (Note: This answer is marked as not entirely correct.)- **Number of units available for sale:** 1,830 unitsThe table includes all transactions affecting the inventory during the period. Initial inventory, additional purchases, and sales are listed with respective quantities, costs, and sales prices. The task is to compute the cost and quantity of units available for sale, considering all purchases and sales. **Inventory Costing Methods: Overview**In this exercise, we explore how to compute the cost assigned to ending inventory using different methods: FIFO (First-In, First-Out), LIFO (Last-In, First-Out), Weighted Average, and Specific Identification.**Requirements:**- Calculate the cost assigned to ending inventory from the given purchases and sales data.- Units sold consist of 660 units from beginning inventory, with various units sold throughout different purchase periods.- Ensure to round your average cost per unit to two decimal places.**Instructions:**1. **Identify Inventory Methods:** - **Perpetual FIFO** - **Perpetual LIFO** - **Weighted Average** - **Specific Identification**2. **Complete Each Tab:** - Compute the ending inventory costs using the specified method.**Example Calculation Using Perpetual FIFO:**- **Goods Purchased:** - February 10: 330 units at $57.00 each- **Cost of Goods Sold:** - Beginning inventory consists of 660 units at $60.00 each.- **Inventory Balance:** - Calculate the remaining inventory after accounting for sales from the beginning inventory and subsequent purchases. **Explanation:**- Starting inventory: 660 units @ $60.00, total $39,600.00.- After a sale, adjust the inventory balance to reflect remaining units and total cost.This example guides you on how to apply FIFO in practice, affecting both cost calculations and inventory balances.

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Description: **Problem 6-3A Perpetual: Alternative cost flows LO P1**Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions: | Date | Activities | Units Acquired at Cost

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Problem 6-3A Perpetual: Alternative cost flows LO P1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions- Date Activities Units Acquired at Cost 660 units @ $60 per unit 330 units @ $57 per unit 110 units @ $45 per unit Units Sold at Retail Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase 15 Sales Aug. 21 Purch Sept. 5 Purchase Sept. 10 Sales Mar. 715 units @ $70 per unit 160 units @ $65 per unit 570 units @ $61 per unit 730 units @ $70 per unit Totals 1,830 units 1,445 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Answer is complete but not entirely correct. Cost of goods available for sale Number of units available for sale 20,133 1,830 units Prev 1 of 3 Next >

Problem 6-3A Perpetual: Alternative cost flows LO P1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions- Date Activities Units Acquired at Cost 660 units @ $60 per unit 330 units @ $57 per unit 110 units @ $45 per unit Units Sold at Retail Jan. 1 Beginning inventory Feb. 10 Purchase Mar. 13 Purchase 15 Sales Aug. 21 Purch Sept. 5 Purchase Sept. 10 Sales Mar. 715 units @ $70 per unit 160 units @ $65 per unit 570 units @ $61 per unit 730 units @ $70 per unit Totals 1,830 units 1,445 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Answer is complete but not entirely correct. Cost of goods available for sale Number of units available for sale 20,133 1,830 units Prev 1 of 3 Next >

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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