Question

$1001 HW Saved Help Se Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 1 units@ $51.80 per unit 245 units @ $56.80 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 300 units @ $86.80 per unit 105 units @ $61.80 per unit 190 units @ $63.80 per unit 170 units @ $96.80 per unit 470 units 680 units 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 fr the March 18 purchase and 105 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and fin answers to nearest whole dollar.) Gross Margin EIFO LIFO Avg. Cost Spec. ID < Prev 32 of 32 ! Next earch о MI a

Answer 1

Perpetual First In First Out method (FIFO) Goods Purchases Cost of Goods sold Cost of Cost per unit # of units sold fost per un Goods sold Date Qty Inventory on Hand Cost per Inventory # of units unit Balance 140 $ 51.80 $ 7,252.00 140 $ 51.80 $ 7,252.00 245 $ 56.80 $ 13,916.00 Mar 01 Mar 05 245 $ 56.80 Mar 09 140 $ 51.80 $ 7,252.00 $ 56.80 $ 9,088.00 160 85 Mar 18 105 $ 61.80 85 105 Mar 25 190 $ 63.80 85 105 $ 56.80 $ 4,828.00 $ 56.80 $ 4,828.00 $ 61.80 $ 6,489.00 $ 56.80 $ 4,828.00 $ 61.80 $ 6,489.00 $ 63.80 $ 12,122.00 $ 61.80 $ 1,236.00 $ 63.80 $ 12,122.00 $ 13,358.00 190 Mar 29 85 85 $ 56.80 $ 4,828.00 $ 61.80 $ 5,253.00 26,421.00 20 190 210 470 Totals Ending Inventory Cost of Goods sold 210 units 470 units $ $ 13,358 26,421 Perpetual Last In First Out method (LIFO) Goods Purchases Cost of Goods sold Cost of Cost per unit # of units sold ost per un Goods sold Date Qty Mar 01 Mar 05 245 $ 56.80 Mar 09 245 $ 56.80 $ 13,916.00 $ 51.80 $ 2,849.00 55 Mar 18 105 $ 61.80 Inventory on Hand Cost per Inventory # of units unit Balance 140 $ 51.80 $ 7,252.00 140 $ 51.80 $ 7,252.00 245 $ 56.80 $ 13,916.00 $ 85 $ 51.80 $ 4,403.00 85 $ 51.80 $ 4,403.00 105 $ 61.80 $ 6,489.00 85 $ 51.80 $ 4,403.00 105 $ 61.80 $ 6,489.00 190 $ 63.80 $ 12,122.00 85 $ 51.80 $ 4,403.00 105 $ 61.80 $ 6,489.00 20 $ 63.80 $ 1,276.00 210 $ 12,168.00 Mar 25 190 $ 63.80 Mar 29 170 $ 63.80 $ 10,846.00 470 27,611.00 Totals Ending Inventory Cost of Goods sold 210 units 470 units $ $ 12,168 27,611

Date Qty Mar 1 Mar 5 245 Mar 9 Mar 18 105 Mar 25 190 Mar 29 Totals Ending Inventory Cost of Goods sold Average Goods Purchases Cost of Goods sold Inventory on Hand Cost of Cost per unit # of units sold ost per un Cost per Inventory # of units Goods sold unit Balance 140 $ 51.80 $ 7,252.00 $ 56.80 385 $ 54.98 $ 21,168.00 300 $ 54.98 $ 16,494.00 85 $ 54.98 $ 4,673.30 $ 61.80 190 $ 58.75 $ 11,162.30 $ 63.80 380 $ 61.27 $ 23,284.30 170 $ 61.27 $ 10,415.90 210 $ 61.27 $ 12,866.70 470 26,909.90 210 $ 12,866.70 210 units $ 12,867 470 units $ 26,910 Specific idenification Goods Purchases Cost of Goods sold Cost of Cost per unit # of units sold fost per un Goods sold Date Qty Mar 01 Mar 05 245 $ 56.80 Mar 09 85 $ 51.80 $ 4,403.00 $ 56.80 $ 12,212.00 215 Mar 18 105 $ 61.80 Inventory on Hand Cost per Inventory # of units unit Balance 140 $ 51.80 $ 7,252.00 140 $ 51.80 $ 7,252.00 245 $ 56.80 55 $ 51.80 $ 2,849.00 30 $ 56.80 $ 1,704.00 55 $ 51.80 $ 2,849.00 30 $ 56.80 $ 1,704.00 105 $ 61.80 $ 6,489.00 55 $ 51.80 $ 2,849.00 30 $ 56.80 $ 1,704.00 105 $ 61.80 $ 6,489.00 190 $ 63.80 $ 12,122.00 55 $ 51.80 $ 2,849.00 30 $ 56.80 $ 1,704.00 40 $ 61.80 $ 2,472.00 85 $ 63.80 $ 5,423.00 210 $ 12,448.00 Mar 25 190 $ 63.80 Mar 29 65 $ 61.80 $ 4,017.00 $ 63.80 $ 6,699.00 105 470 27,331.00 Totals Ending Inventory Cost of Goods sold 210 units 470 units $ $ 12,448 27,331

Total Sales 300 units x $86.80 170 units x $96.80 $ 26,040 $ 16,456 $ 42,496 Sales Cost of Goods sold Gross Profit FIFO $ 42,496 $ $ 26,421 $ $ 16,075$ LIFO Avg. Cost Spec. ID 42,496 $ 42,496 $ 42,496 27,611 $ 26,910 $ 27,331 14,885$ 15,586 $ 15,165

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