PROBLEM SET A Problem 5-1A Perpetual: Alternative cost flows Information: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Date Activities Units acquired at cost Units sold at retail Mar. 1 Beginning inventory 100 units @$50.00 per unit Mar. 5 Purchase 400 units @ $55.00 per unit Mar. 9 Sales 420 units@$85.00 unit Mar. 18 Purchase 120 Units @ $60.00 per unit Mar. 25 Purchase 200 units @ $62.00 per unit Mar. 29 Sales 160 Units @ $95.00 unit Totals 820 units 580 units 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) 4. Compute gross profit earned by the company for each of the four costing methods in part 3. Refer to the information in Problem 5-1A and assume the periodic inventory system is used. Check: 3. Ending inventory; fifo $14800, lifo $13,680, wa $14352 4 lifo gross profit $17980