Required information (The following information apples to the questions displayed below] Warmenwoods Company uses a periodic inventory system. it entered into the following purchases and sales transactions for March. Date Activities Uits Acquired at Cost 170 unitse se per unit e units ses per unit Uits Sold at Retall Kar. 1 Deginning inventory Kar. 5 Purchase Mar. 9 Sales 0 unitse ses per unit 26e units Sre per unit units S72 per unit Mar. 18 Purchase 25 Purchase 2itse ss per unit 790 units Har. 29 Sales Totals its For specific identficatson, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase: the March 29 sale consisted of n0 units from the March 18 purchase and 190 units from the March 25 purchase. Compute gross profit eamed by the company for each of the four cosaing methods. (Round your average cost per unit to 2 decimal aces and final answers to nearest whole dollar) Weighted Average Specific Identification FIFO LIFO Sales Less Cost of goods soid Bross profie

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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## Required Information

**[The following information applies to the questions displayed below.]**

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

| Date      | Activities         | Units Acquired at Cost | Units Sold at Retail |
|-----------|---------------------|------------------------|----------------------|
| Mar. 1    | Beginning Inventory | 270 units @ $60 per unit |                      |
| Mar. 5    | Purchase            | 225 units @ $65 per unit |                      |
| Mar. 9    | Sale                |                        | 490 units @ $95 per unit |
| Mar. 18   | Purchase            | 300 units @ $68 per unit |                      |
| Mar. 25   | Purchase            | 240 units @ $72 per unit |                      |
| Mar. 29   | Sale                |                        | 300 units @ $95 per unit |
|           | Totals              | 1,035 units            | 790 units             |

For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 190 units from the March 25 purchase.

### 4. Compute gross profit earned by the company for each of the four costing methods.

*(Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)*

|               | FIFO | LIFO | Weighted Average | Specific Identification |
|---------------|------|------|------------------|-------------------------|
| **Sales**     |      |      |                  |                         |
| **Less: Cost of Goods Sold** | ⑤     | ⑤    | ⑤                | ⑤                       |
| **Gross Profit** | ⑤    | ⑤    | ⑤                | ⑤                       |

*Note: A response in a shaded cell is not required; the information is provided for educational purposes only.*
Transcribed Image Text:## Required Information **[The following information applies to the questions displayed below.]** Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |-----------|---------------------|------------------------|----------------------| | Mar. 1 | Beginning Inventory | 270 units @ $60 per unit | | | Mar. 5 | Purchase | 225 units @ $65 per unit | | | Mar. 9 | Sale | | 490 units @ $95 per unit | | Mar. 18 | Purchase | 300 units @ $68 per unit | | | Mar. 25 | Purchase | 240 units @ $72 per unit | | | Mar. 29 | Sale | | 300 units @ $95 per unit | | | Totals | 1,035 units | 790 units | For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 190 units from the March 25 purchase. ### 4. Compute gross profit earned by the company for each of the four costing methods. *(Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)* | | FIFO | LIFO | Weighted Average | Specific Identification | |---------------|------|------|------------------|-------------------------| | **Sales** | | | | | | **Less: Cost of Goods Sold** | ⑤ | ⑤ | ⑤ | ⑤ | | **Gross Profit** | ⑤ | ⑤ | ⑤ | ⑤ | *Note: A response in a shaded cell is not required; the information is provided for educational purposes only.*
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