PROBLEM SET A

Problem $6-1$A

Perpetual: Alternative cost flows

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. $($For specific identification, units sold consist of $80$ units from beginning inventory, $340$ units from the March $5$ purchase, $40$ units from the March $18$ purchase, and $120$ units from the March $25$ purchase.

$\backslash$table$[[$Date$,$Activities,Units Acquired at Cost,Units Sold at Retail$],[$Mar$.1,$Beginning inventory $.,100$ units @ $$50$ per unit,$420$ units @ $$85$ per unit$],[$Mar$.5,$Purchase $.....,400$ units @ $$55$ per unit$],[$Mar$.9,$Sales..................,$],[$Mar$.18,$Purchase $.,120$ units @$$60$ per unit$],[$Mar$.25,$Purchase $.,200$ units @ $$62$ per unit$],[$Mar$.29,$Sales..................,,$160$ units @ $$95$ per unit$],[,$Totals $..................,820$ units,$580$ units$]]$

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 $3.$