Required Information [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 Activities Beginning inventory Purchase 100 units 225 units Units Acquired at Cost @$51.00 per unit @ $56.00 per unit Units Sold at Retail March 9 Sales 260 units @ $86.00 per unit. March 18 March 25 Purchase Purchase 85 units 150 units $61.00 per unit @$63.00 per unit March 29 Sales 130 units @$96.00 per unit Totals 560 units 390 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65 units from beginning Inventory. 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Gross Margin FIFO LIFO Weighted Average Specific ID Sales Less: Cost of goods sold Gross profit
Required Information [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 Activities Beginning inventory Purchase 100 units 225 units Units Acquired at Cost @$51.00 per unit @ $56.00 per unit Units Sold at Retail March 9 Sales 260 units @ $86.00 per unit. March 18 March 25 Purchase Purchase 85 units 150 units $61.00 per unit @$63.00 per unit March 29 Sales 130 units @$96.00 per unit Totals 560 units 390 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65 units from beginning Inventory. 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Gross Margin FIFO LIFO Weighted Average Specific ID Sales Less: Cost of goods sold Gross profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Required Information
[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
Activities
Beginning inventory
Purchase
March 9
Sales
March 18
Purchase
March 25
Purchase
Units Acquired at Cost
100 units @ $51.00 per unit
225 units @ $56.00 per unit
85 units @ $61.00 per unit
150 units @ $63.00 per unit
Units Sold at Retail
260 units @$86.00 per unit
March 29
Sales
Totals
560 units
130 units @ $96.00 per unit
390 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific Identification, units sold Include 65
units from beginning Inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Gross Margin
FIFO
LIFO
Weighted
Average
Specific ID
Sales
Less Cost of goods sold
Gross profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff03b9d60-5bc8-4d76-81b5-e69cf82965b3%2F1fa89aa7-9cc3-44ff-a07e-8dd075549c2b%2Fwdz80kp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[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
Activities
Beginning inventory
Purchase
March 9
Sales
March 18
Purchase
March 25
Purchase
Units Acquired at Cost
100 units @ $51.00 per unit
225 units @ $56.00 per unit
85 units @ $61.00 per unit
150 units @ $63.00 per unit
Units Sold at Retail
260 units @$86.00 per unit
March 29
Sales
Totals
560 units
130 units @ $96.00 per unit
390 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific Identification, units sold Include 65
units from beginning Inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Gross Margin
FIFO
LIFO
Weighted
Average
Specific ID
Sales
Less Cost of goods sold
Gross profit
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Step 1: Introduce the concept of perpetual inventory system:-
VIEWStep 2: Calculating gross profit by specific identification method :--
VIEWStep 3: Calculating Gross profit by FIFO METHOD:---
VIEWStep 4: Calculating Gross profit by LIFO METHOD:---
VIEWStep 5: Calculating cost of goods sold by weighted average method:---
VIEWStep 6: Calculating gross profit by weighted average method:-
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