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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   Jan. 1   Beginning inventory   620 units @ $45 per unit           Feb. 10   Purchase   310 units @ $42 per unit           Mar. 13   Purchase   120 units @ $30 per unit           Mar. 15   Sales           770 units @ $85 per unit   Aug. 21   Purchase   190 units @ $50 per unit           Sept. 5   Purchase   520 units @ $48 per unit           Sept. 10   Sales           710 units @ $85 per unit         Totals   1,760 units     1,480 units     Required: 3. 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 of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 purchase.

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   Jan. 1   Beginning inventory   620 units @ $45 per unit           Feb. 10   Purchase   310 units @ $42 per unit           Mar. 13   Purchase   120 units @ $30 per unit           Mar. 15   Sales           770 units @ $85 per unit   Aug. 21   Purchase   190 units @ $50 per unit           Sept. 5   Purchase   520 units @ $48 per unit           Sept. 10   Sales           710 units @ $85 per unit         Totals   1,760 units     1,480 units     Required: 3. 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 of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 purchase.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 16MCQ: ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory...
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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
  Jan. 1   Beginning inventory   620 units @ $45 per unit        
  Feb. 10   Purchase   310 units @ $42 per unit        
  Mar. 13   Purchase   120 units @ $30 per unit        
  Mar. 15   Sales           770 units @ $85 per unit
  Aug. 21   Purchase   190 units @ $50 per unit        
  Sept. 5   Purchase   520 units @ $48 per unit        
  Sept. 10   Sales           710 units @ $85 per unit
        Totals   1,760 units     1,480 units  
 


Required:
3. 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 of 620 units from beginning inventory, 210 from the February 10 purchase, 120 from the March 13 purchase, 140 from the August 21 purchase, and 390 from the September 5 purchase.

 

Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per # of units Cost per # of units sold Cost per Cost of Goods Sold unit Inventory Balance Date # of units unit unit Jan 1 620 @ $ 45.00 $ 27,900.00 = Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10
Transcribed Image Text:Perpetual FIFO: Goods Purchased Cost of Goods Sold Inventory Balance Cost per # of units Cost per # of units sold Cost per Cost of Goods Sold unit Inventory Balance Date # of units unit unit Jan 1 620 @ $ 45.00 $ 27,900.00 = Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10
Jan 1 620 $ 45.00 $ 27,900.00 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 0.00 Perpetual FIFO Perpetual LIFO > %24
Transcribed Image Text:Jan 1 620 $ 45.00 $ 27,900.00 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 Totals $ 0.00 0.00 Perpetual FIFO Perpetual LIFO > %24
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