Date March 1 March 5 March 9: March 18 March 25 March 29 Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit 75 units 130 units 500 units @ $60.60 per unit @ $62.60 per unit Units Sold at Retail 240 units @ $55.60 per unit 110 units @ $95.60 per unit 350 units

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 5PB: Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating,...
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Required information
Problem 6-1A (Algo) Perpetual: Alternative cost flows LO P1
[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 11
March 5
March 9
March 18
March 25
March 29
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Units Acquired at Cost
80 units @ $50.60 per unit
215 units @ $55.60 per unit
75 units
130 units
500 units
@ $60.60 per unit
@ $62.60 per unit
Units Sold at Retail
240 units @ $85.60 per unit
110 units @ $95.60 per unit
350 units
Transcribed Image Text:Required information Problem 6-1A (Algo) Perpetual: Alternative cost flows LO P1 [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 11 March 5 March 9 March 18 March 25 March 29 Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit 75 units 130 units 500 units @ $60.60 per unit @ $62.60 per unit Units Sold at Retail 240 units @ $85.60 per unit 110 units @ $95.60 per unit 350 units
References
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55
units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March
25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar
Weighted
Gross Margin
Sales
Less Cost of goods sold
Ons pr
FRO
LIFO
Specific O
Transcribed Image Text:References 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55 units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar Weighted Gross Margin Sales Less Cost of goods sold Ons pr FRO LIFO Specific O
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