PROBLEM SET A

Problem $6-1$A

Perpetual: Alternative

cost flows

P$1$

Check $(3)$ Ending imventory:

FIFO. $$14,800$ : LIFO.

$$13,680$; WA$,$ $$14,352$

$(4)$ LFO gross protit, $$17,980$

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.$)$

Required

Compute cost of goods available for sale and the number of units available for sale.

Compute the number of units in ending inventory.

Compute the cost assigned to ending inventory using $($a$)$ FIFO, $($b$)$ LIFO, $($c$)$ weighted average, and

$($d$)$ specific identification. $($Round all amounts to cents.$)$

Compute gross profit earned by the company for each of the four costing methods in part $3.$