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Marlow company uses a perpetual inventory system..?

Marlow company uses a perpetual inventory system..?
It entered into the following calendar-year 2011 purchases and sales transactions.

Date Activities Units Acquired at Cost Units Sold at Retail
Jan.1 Beginning inventory 650 units @ $ 45.00/unit
Feb.10 Purchase 250 units @ $ 41.00 /unit
Mar. 13 Purchase 125 units @ $ 21.00 /unit
Mar. 15 Sales 475 [email protected] $ 76.00 /unit --sold at retail
Aug. 21 Purchase 210 units @ $61.00 /unit
Sept. 5 Purchase 255 units @ $ 49.00 /unit
Sept. 10 Sales 175 units @ $ 76.00 /unit -- sold at retail

Totals 1,490 units 650 units


Required:

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

Cost of goods available for sale $ 67430
Number of units available for sale 1490 units

2. Compute the number of units in ending inventory.
Ending inventory 840 units


3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) specific identification-units sold consist of 525 units from beginning inventory and 125 units from the March 13 purchase, and (d) weighted average. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 2 decimal places. Round your final answers to the nearest dollar amount.

Ending inventory
(a) FIFO $
(b) LIFO $
(c) Specific identification $
(d) Weighted average $


4.Compute gross profit earned by the company for each of the four costing methods. (Round your per unit costs to 2 decimal places and inventory balances and final answer to the nearest dollar amount.

Gross profit
(a) FIFO $
(b) LIFO $
(c) Specific identification $
(d) Weighted average $

This question was asked on Jan 25, 2013.

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