Activities Beginning inventory Purchase Sales Purchase Purchase Sales Units Acquired at Cost @ $50.20 per unit @ $55.20 per unit 60 units 205 units 65 units 110 units @ $60.20 per unit @ $62.20 per unit Units Sold 220 units @ $85. 90 units @ $95.
Activities Beginning inventory Purchase Sales Purchase Purchase Sales Units Acquired at Cost @ $50.20 per unit @ $55.20 per unit 60 units 205 units 65 units 110 units @ $60.20 per unit @ $62.20 per unit Units Sold 220 units @ $85. 90 units @ $95.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Munabhai
![[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
FIFO
Units Acquired at Cost
LIFO
60 units
205 units
65 units
110 units.
440 units
@ $50.20 per unit
@ $55.20 per unit
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 45
units from beginning inventory, 175 units from the March 5 purchase, 25 units from the March 18 purchase, and 65 units from the March
25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Weighted
Average
@ $60.20 per unit
@ $62.20 per unit
Units Sold at Retail
Specific ID
220 units @ $85.20 per unit
90 units @ $95.20 per unit
310 units
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Transcribed Image Text:[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
FIFO
Units Acquired at Cost
LIFO
60 units
205 units
65 units
110 units.
440 units
@ $50.20 per unit
@ $55.20 per unit
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 45
units from beginning inventory, 175 units from the March 5 purchase, 25 units from the March 18 purchase, and 65 units from the March
25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Weighted
Average
@ $60.20 per unit
@ $62.20 per unit
Units Sold at Retail
Specific ID
220 units @ $85.20 per unit
90 units @ $95.20 per unit
310 units
D
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