Required information:

Problem 6-1A Perpetual: Alternative cost flows LO P1

[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.

Problem 6-1A Part 1

Required: 1. Compute cost of goods available for sale and the number of units available for sale.

Problem 6-1A Part 2

2. Compute the number of units in ending inventory.

Problem 6-1A Part 3

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase.

PERPETUAL FIFO

PERPETUAL LIFO

WEIGHTED AVERAGE PERPETUAL

Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.)

SPECIFIC IDENTIFICATION

Compute the cost assigned to ending inventory using specific identification. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase.

Problem 6-1A Part 4

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

Activities Units Sold at Retail Units Acquired at Cost 255 units e $57.20 per unit 115 units e 62.20 per unit Date Mar. 1 Beginning inventory160 units $52.20 per unit Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 20 units e $87.20 per unit 210 units e $64.20 per unit 190 unitse $97.20 per unit 510 units Totals 740 units