Hawaii Pacific Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and

Question:

Hawaii Pacific Company uses a perpetual inventory system. It entered into the following calendar-year 2011 purchases and sales transactions.

Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using
(a) FIFO,
(b) LIFO,
(c) Specific identification€”ending inventory consists of 105 units from beginning inventory, 140 units from the January 10 purchase, 105 units from the February 13 purchase, 50 units from the July 21 purchase, and 245 units from the August 5 purchase,
(d) Weighted average. (Round per unit costs to three decimals, but inventory balances to the dollar.)
4. Compute gross profit earned by the company for each of the four costing methods in part 3.
Analysis Component
5. If the company€™s manager earns a bonus based on a percent of gross profit, which method of inventory costing will the manager likely prefer?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...