Problem 6-2AA Periodic: Alternative cost flows LO P3

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Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

Date Problem 6-2AA Periodic: Alternative cost flows LO P3 The following information applies to the questions displayed below) Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March Activities Units Acquired at Cost Units Sold at Retail Beginning inventory 165 units@ $55 per unit Mar. 5 Purchase 465 units@ $60 per unit Mar. 9 Sales 485 units@ $90 per unit Mar. 18 Purchase 250 units@ $65 per unit Mar. 25 Purchase 330 units@ $67 per unit Mar. 29 Sales 290 units@ $100 per unit Totals 1,210 units 775 units Mar. 1 For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 415 units from the March 5 purchase, the March 29 sale consisted of 105 units from the March 18 purchase and 185 units from the March 25 purchase. Problem 6-2AA Part 3 3. Compute the cost assigned to ending inventory using (a) FIFO, () LIFO. (c) weighted average, and (d) specific identification (Round your average cost per unit to 2 decimal places.) a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Cost per # of units Cost of # of units Goods # of units Cost per Cost per Ending unit Goods Available unit sold in ending unit Sold Inventory for Sale inventory 1651 s 55.00 $ 9,075 $ 0.00 $ 0 S 0.00 $ 0 0 Beginning inventory Purchases March 5 March 18 March 25 Total $ $ 0.00 0.00 0 0 0 465 $ 60.00 250 S 65.00 330 S 67.00 1,210 27,900 16,250 22,110 $ 75,335 5 0.00 $ 0.00 330 S 67.00 330 0 22,110 $ 22,110 0 b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Cost per W of units unit Available for Sale 165 $ 55.00 $ 9,075 Cost of Goods Sold W of units Cost per Cost of Goods sold unit Sold Ending Inventory of units Cost per Ending in ending unit Inventory Inventory $ 0 0 Beginning inventory Purchases March 5 March 18 March 25 Total 465 250 330 1.210 $ 60.00 $ 65.00 $ 67.00 0 27.900 16,250 22,110 $ 75,335 0 0 c) Average Cost Cost of Goods Available for Sale Cost of Average Goods # of units Cost per Available unit for Sale 165 $ 9,075 Cost of Goods Sold Average Cost of # of units Cost per Goods sold Unit Sold Ending Inventory # of units Average in ending Cost per Ending Inventory inventory unit Beginning inventory Purchases March 5 March 18 March 25 Total 465 250 330 1,210 27,900 16,250 22,110 $ 75,335 $ 62.26 775 $ 435 $ 0 d) Specific Identification Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale 165 $ 55.00 $ 9,075 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 70 $ 55.00 $ 3,850 95 $ 55.00 $ 5,225 Beginning inventory Purchases March 5 March 18 March 25 Total 465 250 330 1,210 $ 60.00 $ 65.00 $ 67.00 27,900 16,250 22,110 $ 75,335 415 $ 60.00 105 $ 65.00 185 $ 67.00 775 24.900 6,825 12,395 $ 47,970 50 $ 60.00 145 $ 65.00 145 $ 67.00 435 3,000 9,425 9,715 $ 27,365 Problem 6-2AA Part 4 4. Compute gross profit earned by the company for each of the four costing methods. (Round you places and final answers to nearest whole dollar.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0