6-4A

3. Compute the cosl (d) specific identification. (Round all i 4. Compute gross profit earned by the company for cach Locks Cameras s a perpetual inventory system. It entered into the follo s. (For specific identification, units sold consist 1 I. Binocular equipment ei c che,0 mthe A Problem 6-3 Perpetual: Alternative cost flows P1 Montoure Company uses a perpetiu chases and sales transactions. (For specitic nventory, 300 from the February 10 purchase, 200 fromt purchase, and 250 from the September 5 purchase.) Tr Stabilizers gust Units Sold at Retail Units Acquired at Cost te the lower of co Date Compu 600 units @ $45.00 per unit 400 units$42.00 per unit 200 units $27.00 per unit If the market amount is to the Merchandise Inv Jan. 1 Beginning inventory Feb. 10 Purchase Mar, 13 Purchase Mar. 15 Sales Aug. 21 Purchase. Sept 5 Purchase Sept. 10 Sales 800 units @ $75.00 per unit o Company's finano making physical counts of is understated by $56,000 For Year Ended Dec 100 units 500 units $50.00 per unit $46.00 per unit 600 units$75.00 per unit 1,400 units Totals 1,800 units Cost of goods (a) (b) Net income 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. (c) Total current (d) Total equity Check nding inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and FIFO, $18,400: LIFO, (d) specific identification. (Round all amounts to cents.) 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 inventon $18,000, WA, $17,760 Required 1. For each key finan 4) LIFO gross profit. $45800 following to show costing will the manager likely prefer? Reported amou Adjustments fo Problem 6-4A Periodic: Alternative cost flows Refer to the information in Problem 6-3A and assume the periodic inventory system Corrected amo 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) weighted average. and P3 Analysis Componer 2. What is the err errors? Explain 3. Explain why th ment of equity (d) specific identification. (Round all amounts to cents.) 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 percentage of gross profit, which method of inveir Seminole Compan It made successiv system. On Decer tory costing will the manager likely prefer