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Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Avg. Cost Spec. ID

Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Avg. Cost Spec. ID

FINANCIAL ACCOUNTING
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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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Activities Gross Margin Sales Less: Cost of goods sold Gross profit Units Acquired at Cost 120 units@ $51.40 per unit 235 units@ $56.40 per unit FIFO 95 units @ $61.40 per unit 170 units @ $63.40 per unit 620 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 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.) LIFO Avg. Cost Units Sold at Retail 280 units@ $86.40 per unit 150 units @ $96.40 per unit 430 units Spec. ID
Transcribed Image Text:Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Activities Gross Margin Sales Less: Cost of goods sold Gross profit Units Acquired at Cost 120 units@ $51.40 per unit 235 units@ $56.40 per unit FIFO 95 units @ $61.40 per unit 170 units @ $63.40 per unit 620 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 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.) LIFO Avg. Cost Units Sold at Retail 280 units@ $86.40 per unit 150 units @ $96.40 per unit 430 units Spec. ID
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