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

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Question:

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

January 1 Beginning Inventory 600 units at $60 per unit. February 10 Purchase 400 at $57 per unit. March 13 Purchase 150 at $45 per unit. March 15 Sales 750 at $85 per unit. August 21 purchase 150 at $65 per unit. September 5 Purchase 450 units at $61 per unit. September 10 Sales 600 units at $85 per unit. Total units acquired at cost is 1750. Total units sold at retail is 1350.

1. Compute the cost assigned to ending inventory using a)FIFO b)LIFO c)weighted average d)specific identification. For specific identification , units sold consist of 600 units from beginning inventory, 300 from the February 10 purchase, 150 from March 13 purchase, 100 from August 21 purchase, and 200 from September 5 purchase.

2. Compute gross profit earned by the company for each of the four costing methods