Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October: Units Unit cost Total cost Balance on 10/115,000P6P90,000Purchased on 10/520,000P9P180,000Sold on 10/2018,000 Purchased on 10/2512,000P7P84,000 Based on the above, answer the following (Round unit cost to two decimal places): What amount should Montero report as inventory on October 31 using the moving average method? ________________What amount should Montero report as cost of goods sold for October using the weighted average method? ________________Under the FIFO method, what amount should Montero report as gross profit for October? ________________

Under FIFO method, goods purchased first are to be sold first and newer goods are left in stock or…

Answered: Montero Company maintains a perpetual…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 5PA

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Montero Company maintains a perpetual inventory system and sells all its inventories at a price of P12 per unit. Montero has the following information pertaining to its inventory for the month of October:

	Units	Unit cost	Total cost
Balance on 10/1	15,000	P6	P90,000
Purchased on 10/5	20,000	P9	P180,000
Sold on 10/20	18,000
Purchased on 10/25	12,000	P7	P84,000

Based on the above, answer the following (Round unit cost to two decimal places):

What amount should Montero report as inventory on October 31 using the moving average method? ________________
What amount should Montero report as cost of goods sold for October using the weighted average method? ________________
Under the FIFO method, what amount should Montero report as gross profit for October? ________________

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