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

Warnerwoods Company uses a perpetual 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 140 units @ $51.80/unit
Mar. 5 Purchase 245 units @ $56.80/unit
Mar. 9 Sales 300 units @ $86.80/unit
Mar. 18 Purchase 105 units @ $61.80/unit
Mar. 25 Purchase 190 units @ $63.80/unit
Mar. 29 Sales 170 units @ $96.80/unit
    Totals 680 units 470 units

1.

Required:
1.

Compute cost of goods available for sale and the number of units available for sale.
Cost of Goods Available for Sale
# of Units Cost Per Unit Cost of Goods Available
Beginning Inventory
Purchases:
March 5
March 18
March 25
Total $
2. Compute the number of units in ending inventory.
Ending Inventory    Units
3.

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d)specific identification. For specific identification, the March 9 sale consisted of 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase. (Round your average cost per unit to 2 decimal places.)
4.

Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase. (Round average cost per unit to 2 decimal places.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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