1 . Calculate the cost of goods available for sale and the number of units available for...
Question:
1. Calculate the cost of goods available for sale and the number of units available for sale.
2. Calculate the number of units in the closing inventory.
3. Calculate the cost assigned to the end-of-period inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) custom identification. For specific identification, the March 9 sale consisted of 105 units from the beginning of inventory and 235 units from the March 5 purchase; The March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase. (Weighted average cost per unit, rounded to 2 decimal places.)
4. Calculate the gross profit earned by the company for each of the four cost methods. For specific identification, the March 9 sale consisted of 105 units from the beginning of inventory and 235 units from the March 5 purchase; The March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase. (Round the weighted average cost per unit to two decimals.)
Warner woods Company uses a perpetual inventory system. It has entered the below trading transactions for the month of March.
History | activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Mart | 1 | Initial inventory | 180 | units | @ $52.60 per unit | |||||||
Mart | 5 | To buy | 265 | units | @ $57.60 per unit | |||||||
Mart | 9 | Sales | 340 | units | @ $87.60 per unit | |||||||
Mart | 18 | To buy | 125 | units | @ $62.60 per unit | |||||||
Mart | 25 | To buy | 230 | units | @ $64.60 per unit | |||||||
Mart | 29 | Sales | 210 | units | @ $97.60 per unit | |||||||
totals | 800 | units | 550 | units | ||||||||
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak