! 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 March 1 March 5 Activities Beginning inventory Purchase March 9 Sales March 18 March 25 March 29 Purchase Purchase Sales Units Acquired at Cost 120 units @ $55 per unit 420 units $60 per unit 160 units @ $65 per unit 240 units @ $67 per unit Units Sold at Retail 440 units @ $90 per unit Totals 940 units 200 units @ $100 per unit 640 units For specific identification, units sold include 40 units from beginning inventory, 400 units from the March 5 purchase, 60 units from the March 18 purchase, and 140 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: 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 Gross profit $ 0 $ 0 $ 0 $ 0

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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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
March 1
March 5
Activities
Beginning inventory
Purchase
March 9
Sales
March 18
March 25
March 29
Purchase
Purchase
Sales
Units Acquired at Cost
120 units @ $55 per unit
420 units $60 per unit
160 units @ $65 per unit
240 units @ $67 per unit
Units Sold at Retail
440 units @ $90 per unit
Totals
940 units
200 units @ $100 per unit
640 units
For specific identification, units sold include 40 units from beginning inventory, 400 units from the March 5 purchase, 60
units from the March 18 purchase, and 140 units from the March 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods.
Note: 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
Gross profit
$
0 $
0 $
0 $
0
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 March 1 March 5 Activities Beginning inventory Purchase March 9 Sales March 18 March 25 March 29 Purchase Purchase Sales Units Acquired at Cost 120 units @ $55 per unit 420 units $60 per unit 160 units @ $65 per unit 240 units @ $67 per unit Units Sold at Retail 440 units @ $90 per unit Totals 940 units 200 units @ $100 per unit 640 units For specific identification, units sold include 40 units from beginning inventory, 400 units from the March 5 purchase, 60 units from the March 18 purchase, and 140 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: 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 Gross profit $ 0 $ 0 $ 0 $ 0
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