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Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

 


Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

  Date Activities Units Acquired at Cost Units Sold at Retail
  Mar. 1   Beginning inventory   200 units @ $90 per unit        
  Mar. 5   Purchase   500 units @ $95 per unit        
  Mar. 9   Sales           520 units @ $125 per unit
  Mar. 18   Purchase   320 units @ $100 per unit        
  Mar. 25   Purchase   400 units @ $102 per unit        
  Mar. 29   Sales           360 units @ $135 per unit
        Totals   1,420 units     880 units  
 


For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 450 units from the March 5 purchase; the March 29 sale consisted of 140 units from the March 18 purchase and 220 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

DO all 4!!

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)

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Expert Solution

 

ekkarill92 answered 1 year ago
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