Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 Gross Margin Activities Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Purchase Purchase Sales Totals FIFO Units Acquired at Cost 200 units @ $53.00 per unit 275 units @ $58.00 per unit LIFO 135 units @ $63.00 per unit 250 units @ $65.00 per unit 860 units Problem 5-1A (Algo) Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 115 units from beginning inventory, 245 units from the March 5 purchase, 95 units from the March 18 purchase, and 135 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Weighted Average Units Sold at Retail Specific ID 360 units @ $88.00 per unit 230 units @ $98.00 per unit 590 units
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 Gross Margin Activities Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Purchase Purchase Sales Totals FIFO Units Acquired at Cost 200 units @ $53.00 per unit 275 units @ $58.00 per unit LIFO 135 units @ $63.00 per unit 250 units @ $65.00 per unit 860 units Problem 5-1A (Algo) Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 115 units from beginning inventory, 245 units from the March 5 purchase, 95 units from the March 18 purchase, and 135 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Weighted Average Units Sold at Retail Specific ID 360 units @ $88.00 per unit 230 units @ $98.00 per unit 590 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1
[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
March 9
March 18
March 25
March 29
Activities
Problem 5-1A (Algo) Part 4
Gross Margin
Beginni
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
inventory
FIFO
Units Acquired at Cost
200 units @ $53.00 per unit
275 units @ $58.00 per unit
LIFO
135 units @ $63.00 per unit
250 units @ $65.00 per unit
860 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 115
units from beginning inventory, 245 units from the March 5 purchase, 95 units from the March 18 purchase, and 135 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Weighted
Average
Units Sold at Retail
Specific ID
360 units @ $88.00 per unit
230 units
590 units
$98.00 per unit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc860f7d-8144-482b-af65-d08d28366106%2F238c9e1a-f4a7-4085-a632-bbac4230c712%2Fthdi5ra_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1
[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
March 9
March 18
March 25
March 29
Activities
Problem 5-1A (Algo) Part 4
Gross Margin
Beginni
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
inventory
FIFO
Units Acquired at Cost
200 units @ $53.00 per unit
275 units @ $58.00 per unit
LIFO
135 units @ $63.00 per unit
250 units @ $65.00 per unit
860 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 115
units from beginning inventory, 245 units from the March 5 purchase, 95 units from the March 18 purchase, and 135 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Weighted
Average
Units Sold at Retail
Specific ID
360 units @ $88.00 per unit
230 units
590 units
$98.00 per unit
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VIEWStep 2: Computation of cost of goods sold and cost assigned to ending inventory using the FIFO :
VIEWStep 3: Computation of cost of goods sold and cost assigned to ending inventory using the LIFO :
VIEWStep 4: Computation of cost of goods sold and cost assigned to ending inventory using the Weighted Average:
VIEWStep 5: Computation of cost of goods sold and cost assigned to ending inventory using the Specific Identific
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