4. Compute gross profit earned by the company for each of the four costing methods. For spectic identification, units sold include 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. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit $ S FIFO 50,900 $ 31,800 19,100 $ LIFO Weighted Average 50,900 $ 33,900 17.000 $ 50,000 $ 32,961 17,939 $ Specific ID 50,900 14,060 18,360
4. Compute gross profit earned by the company for each of the four costing methods. For spectic identification, units sold include 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. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit $ S FIFO 50,900 $ 31,800 19,100 $ LIFO Weighted Average 50,900 $ 33,900 17.000 $ 50,000 $ 32,961 17,939 $ Specific ID 50,900 14,060 18,360
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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[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.
Date
March 1
March 5
March 9
March 18
March 25,
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
$
S
FIFO
Units Acquired at Cost
$50 per unit
$55 per unit
50,900 $
31,800
19,100 $
100 units
400 units
120 unita
200 units
820 units
4. Compute gross profit earned by the company for each of the four costing methods. For spectic identification, units sold include 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.
Note: Round weighted average cost per unit to 2 decimal places.
LIFO
$60 per unit
$62 per unit
Weighted Average
50,900 $
33,900
17,000 $
50,000 $
32,961
17,939 $
Units Sold at Retaili
420 units
160 units
580 unita
Specific ID
#$85 per unit
50,900
14,060
18,360
$95 per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdbead96-3503-4bf3-bb90-f78e8f640ada%2F7e678bde-c078-4b64-88bb-b699d1e366ba%2Fcix35ql_processed.jpeg&w=3840&q=75)
Transcribed Image Text:7
[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.
Date
March 1
March 5
March 9
March 18
March 25,
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
$
S
FIFO
Units Acquired at Cost
$50 per unit
$55 per unit
50,900 $
31,800
19,100 $
100 units
400 units
120 unita
200 units
820 units
4. Compute gross profit earned by the company for each of the four costing methods. For spectic identification, units sold include 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.
Note: Round weighted average cost per unit to 2 decimal places.
LIFO
$60 per unit
$62 per unit
Weighted Average
50,900 $
33,900
17,000 $
50,000 $
32,961
17,939 $
Units Sold at Retaili
420 units
160 units
580 unita
Specific ID
#$85 per unit
50,900
14,060
18,360
$95 per unit
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Step 1: Introduction
VIEWStep 2: Computation of Cost of Goods Sold under FIFO Method
VIEWStep 3: Computation of Cost of Goods Sold under LIFO Method
VIEWStep 4: Computation of Cost of Goods Sold under Specific Identification Method
VIEWStep 5: Computation of Cost of Goods Sold under Weighted Average Method
VIEWStep 6: Computation of Sales Value
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