accounting chapter 5 quistion 3 & 5

warner company

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. Date March 1 March 5 March 9 March 18: March 251 March 291 Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals Units Acquired at Cost 240 units @ $53.80 per unit 295 units @ $58.80 per unit D 155 units @ $63.80 per unit 290 units @ $65.80 per unit 980 units Units Sold at Retail 400 units @ $88.80 per unit 270 units @ $98.80 per unit 670 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 135 units from beginning inventory, 265 units from the March 5 purchase, 115 units from the March 18 purchase, and 155 units from the March 25 purchase. Date March 1 March 5 Total March 5 March 9 Total March 9 March 181 Total March 18 March 25 Total March 25 Goods Purchased # of units Cost per unit # of units sold Perpetual FIFO: Cost of Goods Sold Cost per unit Cost of Goods Sold + # of units Inventory Balance Cost per unit 240 at $53.80 = Inventory Balance $ 12,912.00 March 25 Total March 25 March 29 Total March 29 Totals + $ 0.00 S Date March 11 March 5 Total March 5 March 9 Total March 9 March 18 Total March 18 March 25 Total March 25 Goods Purchased # of units Cost per unit # of units sold Perpetual LIFO: Cost of Goods Sold Cost per Cost of Goods Sold unit # of units Inventory Balance Cost per unit 240 at $53.80 = Inventory Balance $ 12,912.00 Required information March 18 Total March 18 March 25 Total March 25 March 29 Total March 29 Totals S Weighted. Average Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO Perpetual LIFO Date March 11 March 5 Average March 5 March 9 March 18 Average March 18 March 25 Average March 25 March 29 Totals Goods Purchased # of units Cost per unit Specific Id # of units sold Weighted Average Perpetual: Cost of Goods Sold Cost per unit Cost of Goods Sold $ Perpetual LICO 0.00 # of units 240 at Specife Id Inventory Balance Cost per unit 53 80 = S Inventory Balance $ 12,912.00 Date March 11 March 5 March 18 March 25 Totals Goods Purchased Cost per unit $53.80 $58.80 B = $63.80 = 290 at $65.80 = # of units 240 at 295 at 155 at Goods Puchased $ 12,912 17,346 9,889 $ 19,082 Specific Identification: # of units sold Cost of Goods Sold Cost per unit $53.80 = $ $58.80 # at at at at $63 80 $65.80 Cost of Goods Sold 0.00 = T S 0.00 0.00 # of units Inventory Balance at, 2222 at at at Cost per Inventory Balance unit $53.80 = S 0.00 $58.80= $63.80 = $65.80 = $ 0.00 0,00 4. Compute gross profit earned by the company for each of the four costing methods. For specific Identification, units sold include 135 units from beginning inventory, 265 units from the March 5 purchase, 115 units from the March 18 purchase, and 155 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID