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 March 18 March 25 Sales March 29 Purchase Purchase Sales Units Acquired at Cost 160 units @ $50 per unit 460 units @ $55 per unit 240 units @ $60 per unit 320 units @ $62 per unit Units Sold at Retail 480 units @ $85 per unit Totals 1,180 units 280 units @ $95 per unit 760 units For specific identification, units sold include 60 units from beginning Inventory, 420 units from the March 5 purchase, 100 units from the March 18 purchase, and 180 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 FIFO LIFO Weighted Average Specific Identification
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 March 18 March 25 Sales March 29 Purchase Purchase Sales Units Acquired at Cost 160 units @ $50 per unit 460 units @ $55 per unit 240 units @ $60 per unit 320 units @ $62 per unit Units Sold at Retail 480 units @ $85 per unit Totals 1,180 units 280 units @ $95 per unit 760 units For specific identification, units sold include 60 units from beginning Inventory, 420 units from the March 5 purchase, 100 units from the March 18 purchase, and 180 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 FIFO LIFO Weighted Average Specific Identification
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 5PA: Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances...
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