Warnerwoods company uses a perpetual inventory system it
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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 | 100 | units | @ $51.00/unit | |||||||
| Mar. | 5 | Purchase | 225 | units | @ $56.00/unit | |||||||
| Mar. | 9 | Sales | 260 | units | @ $86.00/unit | |||||||
| Mar. | 18 | Purchase | 85 | units | @ $61.00/unit | |||||||
| Mar. | 25 | Purchase | 150 | units | @ $63.00/unit | |||||||
| Mar. | 29 | Sales | 130 | units | @ $96.00/unit | |||||||
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| Totals | 560 | units | 390 | units | ||||||||
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Required:
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
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 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 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 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round average cost per unit to 2 decimal places.)
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Rating:
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