Please don't provide solution in an image based answer thank you 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 transactionsfor March.DateMarch 1March 5March 9March 18March 25,March 29Gross MarginActivitiesBeginning inventoryPurchaseSalesPurchasePurchaseSalesTotalsSalesLess: Cost of goods soldGross profit$SFIFOUnits Acquired at Cost$50 per unit$55 per unit50,900 $31,80019,100 $100 units400 units120 unita200 units820 units4. Compute gross profit earned by the company for each of the four costing methods. For spectic identification, units sold include 80units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from theMarch 25 purchase.Note: Round weighted average cost per unit to 2 decimal places.LIFO$60 per unit$62 per unitWeighted Average50,900 $33,90017,000 $50,000 $32,96117,939 $Units Sold at Retaili420 units160 units580 unitaSpecific ID#$85 per unit50,90014,06018,360$95 per unit

FIFO Method: Under this method, inventory is being valued assuming that the Old units were sold…

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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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