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 Purchase March 25 Purchase Units Acquired at Cost 100 units @ $50 per unit 400 units @ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit Units Sold at Retail 420 units @ $85 per unit March 29 Sales Totals 820 units 160 units @ $95 per unit 580 units For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 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. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification
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 Purchase March 25 Purchase Units Acquired at Cost 100 units @ $50 per unit 400 units @ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit Units Sold at Retail 420 units @ $85 per unit March 29 Sales Totals 820 units 160 units @ $95 per unit 580 units For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 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. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification
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 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
Purchase
March 25
March 29
Purchase
Sales
Units Acquired at Cost
100 units @ $50 per unit
400 units @ $55 per unit
120 units @ $60 per unit
200 units @ $62 per unit
Units Sold at Retail
420 units @ $85 per unit
Totals
820 units
160 units
580 units
$95 per unit
For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40
units from the March 18 purchase, and 120 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.
Sales
Less: Cost of goods sold
Gross profit
Weighted
FIFO
LIFO
Average
Specific
Identification](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F13d532cd-08d3-4c7f-81fa-f2f2fbe494d1%2Fdfc2ad7d-3716-40db-a194-5fff15c8f30d%2F4qtkb4a_processed.png&w=3840&q=75)
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
Purchase
March 25
March 29
Purchase
Sales
Units Acquired at Cost
100 units @ $50 per unit
400 units @ $55 per unit
120 units @ $60 per unit
200 units @ $62 per unit
Units Sold at Retail
420 units @ $85 per unit
Totals
820 units
160 units
580 units
$95 per unit
For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40
units from the March 18 purchase, and 120 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.
Sales
Less: Cost of goods sold
Gross profit
Weighted
FIFO
LIFO
Average
Specific
Identification
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Step 1: Introduce to FIFO, LIFO and Weighted Average Method
VIEWStep 2: Working for cost of goods sold under FIFO
VIEWStep 3: Working for cost of goods sold under LIFO
VIEWStep 4: Working for cost of goods sold under Weighted Average Method
VIEWStep 5: Working for cost of goods sold under specific identification
VIEWStep 6: Working for sales revenue
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