Question

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 105 units @ $40.00 per unit Mar. 5 Purchase 405 units @ $45.00 per unit Mar. 9 Sales 425 units @ $75.00 per unit Mar. 18 Purchase 130 units @ $50.00 per unit Mar. 25 Purchase 210 units @ $52.00 per unit Mar. 29 Sales 170 units @ $85.00 per unit Totals 850 units 595 units For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 355 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 125 units from the March 25 purchase.

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.)

a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 105 $40.00 $4,200 425 $40.00 $17,000 85 $40.00 $3,400 Purchases: March 5 405 $45.00 18,225 45.00 0 45.00 0 March 18 130 $50.00 6,500 50.00 0 50.00 0 March 25 210 $52.00 10,920 52.00 0 52.00 0 Total 850 $39,845 425 $17,000 85 $3,400 b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 105 $40.00 $4,200 $40.00 $0 $40.00 $0 Purchases: March 5 405 45.00 18,225 45.00 $0 45.00 0 March 18 130 50.00 6,500 50.00 $0 50.00 0 March 25 210 52.00 10,920 52.00 $0 52.00 0 Total 850 $39,845 0 0 c) Average Cost Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Average Cost per unit Cost of Goods Available for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning inventory 105 $4,200 Purchases: March 5 405 18,225 March 18 130 6,500 March 25 210 10,920 Total 850 $39,845 595 $0 255 $0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory 105 $40.00 $4,200 $40.00 $0 $40.00 $0 Purchases: March 5 405 45.00 18,225 45.00 0 45.00 0 March 18 130 50.00 6,500 50.00 0 50.00 0 March 25 210 52.00 10,920 52.00 0 52.00 0 Total 850 $39,845 0 0 2 decimal places required.

Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

	FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $0 $0 $0 $0

Answer 1