solve all $4$ sections Problem $5-4AA(Static)$ Perpetual: Alternative cost flows $LOP3$

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 $600$ units @ $$45$ per unit

February $10$ Purchase $400$ units @ $$42$ per unit

March $13$ Purchase $200$ units @ $$27$ per unit

March $15$ Sales $800$ units @ $$75$ per unit

August $21$ Purchase $100$ units @ $$50$ per unit

September $5$ Purchase $500$ units @ $$46$ per unit

September $10$ Sales $600$ units @ $$75$ per unit

Totals $1,800$ units $1,400$ units

Required:

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

Compute the number $of$ units $in$ ending inventory.

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 $of600$ units from beginning inventory, $300$ from the February $10$ purchase, $200$ from the March $13$ purchase, $50$ from the August $21$ purchase, and $250$ from the September $5$ purchase.$)$

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

Note: Round your average cost per unit $to2$ decimal places.

The company$s$ manager earns a bonus based $on$ a percent $of$ gross profit. Which method $of$ inventory costing produces the highest bonus for the manager?

multiple choice

LIFO

Specific Identification

FIFO

Weighted Average