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. DateActivitiesUnits Acquired at CostUnits Sold at RetailMarch 1Beginning inventory120units@ $51.40 per unit March 5Purchase235units@ $56.40 per unit March 9Sales 280units@ $86.40 per unitMarch 18Purchase95units@ $61.40 per unit March 25Purchase170units@ $63.40 per unit March 29Sales 150units@ $96.40 per unit Totals620units 430units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75 units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

Answered: Date Activities Units Acquired at Cost…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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	Activities	Units Acquired at Cost	Units Sold at Retail
March 1	Beginning inventory	120	units	@ $51.40 per unit
March 5	Purchase	235	units	@ $56.40 per unit
March 9	Sales				280	units	@ $86.40 per unit
March 18	Purchase	95	units	@ $61.40 per unit
March 25	Purchase	170	units	@ $63.40 per unit
March 29	Sales				150	units	@ $96.40 per unit
	Totals	620	units		430	units

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75 units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

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