Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for
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 | 145 | units | @ $80 per unit | |||||||
Mar. | 5 | Purchase | 445 | units | @ $85 per unit | |||||||
Mar. | 9 | Sales | 465 | units | @ $115 per unit | |||||||
Mar. | 18 | Purchase | 210 | units | @ $90 per unit | |||||||
Mar. | 25 | Purchase | 290 | units | @ $92 per unit | |||||||
Mar. | 29 | Sales | 250 | units | @ $125 per unit | |||||||
Totals | 1,090 | units | 715 | units | ||||||||
For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 165 units from the March 25 purchase.
1.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.)
2.Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta