Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions...
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Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost 130 units e S65 per unit 430 units e S70 per unit Units Sold at Retail Activities 1 Beginning inventory Date Mar. Mar. 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Mar. 450 units e $100 per unit 180 units e $75 per unit 260 units e $77 per unit 220 units e $110 per unit 1,000 units 670 units Totals For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and ) specific identification. (Round your average cost per unit to 2 decimal places.) a) Perlodic FIFO Cost of Goods Avallable for Sale Cost of Goods Sold Ending Inventory Cost of Goods # of units Cost per unit # of units Cost per sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Available for Sale unit Beginning inventory Purchases: %24 0.00 $ %24 0.00 2. March 5 0.00 0.00 March 18 0.00 0.00 March 25 0.00 Total b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold # of units in ending inventory # of units Cost per unit # of units sold Cost per unit Cost per unit Ending Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total olo c) Average Cost Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Average # of units Cost per unit Cost of Goods Available for Sale Average Cost per Unit Cost of Goods Sold # of units Average in ending Cost per unit # of units sold Ending Inventory inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 24 %24 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold # of units in ending inventory Cost per unit # of units Cost per sold Cost per unit Ending Inventory # of units unit Beginning inventory %24 Purchases: March 5 March 18 March 25 Total Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 130 units e $65 per unit 430 units e $70 per unit Units Sold at Retail Mar. Mar. 1 Beginning inventory 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 450 units e $100 per unit 180 units e $75 per unit 260 units e $77 per unit Mar. 29 Sales 220 units e $110 per unit Totals 1,000 units 670 units For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase. 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 Average Specific Identification FIFO LIFO Sales Less: Cost of goods sold Gross profit 0. 24 $4 24 Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost 130 units e S65 per unit 430 units e S70 per unit Units Sold at Retail Activities 1 Beginning inventory Date Mar. Mar. 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Mar. 450 units e $100 per unit 180 units e $75 per unit 260 units e $77 per unit 220 units e $110 per unit 1,000 units 670 units Totals For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and ) specific identification. (Round your average cost per unit to 2 decimal places.) a) Perlodic FIFO Cost of Goods Avallable for Sale Cost of Goods Sold Ending Inventory Cost of Goods # of units Cost per unit # of units Cost per sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Available for Sale unit Beginning inventory Purchases: %24 0.00 $ %24 0.00 2. March 5 0.00 0.00 March 18 0.00 0.00 March 25 0.00 Total b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold # of units in ending inventory # of units Cost per unit # of units sold Cost per unit Cost per unit Ending Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total olo c) Average Cost Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Average # of units Cost per unit Cost of Goods Available for Sale Average Cost per Unit Cost of Goods Sold # of units Average in ending Cost per unit # of units sold Ending Inventory inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 24 %24 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold # of units in ending inventory Cost per unit # of units Cost per sold Cost per unit Ending Inventory # of units unit Beginning inventory %24 Purchases: March 5 March 18 March 25 Total Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 130 units e $65 per unit 430 units e $70 per unit Units Sold at Retail Mar. Mar. 1 Beginning inventory 5 Purchase 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 450 units e $100 per unit 180 units e $75 per unit 260 units e $77 per unit Mar. 29 Sales 220 units e $110 per unit Totals 1,000 units 670 units For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase. 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 Average Specific Identification FIFO LIFO Sales Less: Cost of goods sold Gross profit 0. 24 $4 24
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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