Required information

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.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

135

units

@ $70 per unit

Mar.

5

Purchase

435

units

@ $75 per unit

Mar.

9

Sales

455

units

@ $105 per unit

Mar.

18

Purchase

190

units

@ $80 per unit

Mar.

25

Purchase

270

units

@ $82 per unit

Mar.

29

Sales

230

units

@ $115 per unit

Totals

1,030

units

685

units

For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 155 units from the March 25 purchase.

Problem 6-2AA Part 3

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

Answer is complete but not entirely correct. a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Cost # of units in ending inventory of # of Cost Goods Cost of Goods Sold Cost Ending Inventory units per unit per unit units Available per unit sold for Sale Beginning inventory Purchases March 5 135 $ 70.00 135 $ 70.00 $ $9,450 0.00 0 9,450 435 $ 75.00 115 $ 80.00 32,625 9,200 435 $ 75.00 80.00 82.00 32,625 15,200 22,140 0.00 190 $ 270 $ 75 $ 270 $ March 18 80.00 6,000 22,140 82.00 March 25 0 $ $ 79,415 $ 28,140 Total 685 345 1,030 51,275 b) Periodic LIFO Cost of Goods Available for Cost of Goods Sold Ending Inventory Sale Cost of Goods Cost # of units in ending inventory # of units # of units Cost of Goods Sold Ending Inventory Cost Cost per unit Available per unit per unit for Sale Beginning inventory Purchases 20X $ 70.00 115X $ 70.00 $ 1,400 $ 70.00 $ 135 9,450 8,050 435 X $ OX 230X $ $ 75.00 OX 190X 40 32,625 0 March 5 435 75.00 32,625 190 15,200 22,140 March 18 80.00 80.00 15,200 3,280 270 March 25 82.00 82.00 18,860 82.00 $ $ 26,530 $ 79,415 Total 1,030 685 345 52,885 Sss Required information 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 Date Beginning 1 @ $70 per 135 units unit Mar. inventory e $75 per 435 units unit Mar. 5 Purchase 455 unitse 105 per unit Mar. 9 Sales @ $80 per 190 units unit Mar.18 Purchase @ $82 per 270 unitsunit Mar. 25 Purchase a $115 per unit 230 units Mar.29 Sales 1,030 units 685 units Totals For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 155 units from the March 25 purchase. Problem 6-2AA Part 4 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.) Weighted Specific Average Identificati FIFO LIFO Sales Less: Cost of goods sold O$ 0$ Gross profit