Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost 90 units e $50.80 per unit 220 units e $55.80 per unit Units Sold at Retail Activities Mar. 1 Beginning inventory 5 Purchase Date Mar. 250 units e $85.80 per unit Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 80 units e $60.80 per unit 140 units e $62.80 per unit 120 units e $95.80 per unit Totals 530 units 370 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 60 units from beginning inventory and 190 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 80 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin FIFO LIFO Avg. Cost Spec. ID Sales Less: Cost of goods sold Gross profit Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Units Acquired at Cost 90 units e $50.80 per unit 220 units e $55.80 per unit Date Units Sold at Retail 1 Beginning inventory Mar. 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. Mar. 250 units e $85.80 per unit 80 units e $60.80 per unit 140 units e $62.80 per unit Mar. 29 Sales 120 units e $95.80 per unit Totals 530 units 370 units 2. Compute the number of units in ending inventory. Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost 90 units e $50.80 per unit 220 units e $55.80 per unit Units Sold at Retail Activities Mar. 1 Beginning inventory 5 Purchase Date Mar. 250 units e $85.80 per unit Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 80 units e $60.80 per unit 140 units e $62.80 per unit 120 units e $95.80 per unit Totals 530 units 370 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 60 units from beginning inventory and 190 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 80 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin FIFO LIFO Avg. Cost Spec. ID Sales Less: Cost of goods sold Gross profit Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Units Acquired at Cost 90 units e $50.80 per unit 220 units e $55.80 per unit Date Units Sold at Retail 1 Beginning inventory Mar. 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. Mar. 250 units e $85.80 per unit 80 units e $60.80 per unit 140 units e $62.80 per unit Mar. 29 Sales 120 units e $95.80 per unit Totals 530 units 370 units 2. Compute the number of units in ending inventory.
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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