Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit 100 units @ $61.60 per unit 180 units @ $63.60 per unit 650 units Units Sold at Retail 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit 100 units @ $61.60 per unit 180 units @ $63.60 per unit 650 units Units Sold at Retail 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Mar. 1 Beginning inventory
Mar. 5 Purchase
Mar. 9 Sales.
Mar. 18 Purchase
Mar. 25 Purchase.
Mar. 29 Sales
Totals
Activities
Gross Margin
Sales
Less: Cost of goods sold
Gross profit
Units Acquired at Cost
130 units @ $51.60 per unit
240 units@ $56.60 per unit
FIFO
100 units @ $61.60 per unit.
180 units @ $63.60 per unit
650 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale
consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from
the March 18 purchase and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final
answers to nearest whole dollar.)
LIFO
Avg. Cost
Units Sold at Retail
290 units @ $86.60 per unit
160 units @ $96.60 per unit
450 units
Spec. ID](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F297a232d-84b0-4afc-be8b-dc49e64475d0%2F0fa7e4cf-dbf2-4360-a9a5-a9fd285fa655%2Fsc5c8yu_processed.png&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
Mar. 1 Beginning inventory
Mar. 5 Purchase
Mar. 9 Sales.
Mar. 18 Purchase
Mar. 25 Purchase.
Mar. 29 Sales
Totals
Activities
Gross Margin
Sales
Less: Cost of goods sold
Gross profit
Units Acquired at Cost
130 units @ $51.60 per unit
240 units@ $56.60 per unit
FIFO
100 units @ $61.60 per unit.
180 units @ $63.60 per unit
650 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale
consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from
the March 18 purchase and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final
answers to nearest whole dollar.)
LIFO
Avg. Cost
Units Sold at Retail
290 units @ $86.60 per unit
160 units @ $96.60 per unit
450 units
Spec. ID
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