Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.DateActivitiesUnits Acquired at CostUnits Sold at RetailMarch 1Beginning inventory230units@ $53.60 per unit March 5Purchase290units@ $58.60 per unit March 9Sales 390units@ $88.60 per unitMarch 18Purchase150units@ $63.60 per unit March 25Purchase280units@ $65.60 per unit March 29Sales 260units@ $98.60 per unit Totals950units 650units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 130 units from beginning inventory, 260 units from the March 5 purchase, 110 units from the March 18 purchase, and 150 units from the March 25 purchase.Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Gross MarginSalesLess: Cost of goods soldGross profitFIFOLIFOWeightedAverageSpecific ID

Name: Warnerwoods Company uses a perpetual inventory system. It entered into
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Description: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.DateActivitiesUnits Acquired at CostUnits Sold at RetailMarch 1Beginning inventory230units@ $53.60 per unit March 5Purch

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date	Activities	Units Acquired at Cost	Units Sold at Retail
March 1	Beginning inventory	230	units	@ $53.60 per unit
March 5	Purchase	290	units	@ $58.60 per unit
March 9	Sales				390	units	@ $88.60 per unit
March 18	Purchase	150	units	@ $63.60 per unit
March 25	Purchase	280	units	@ $65.60 per unit
March 29	Sales				260	units	@ $98.60 per unit
	Totals	950	units		650	units

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 130 units from beginning inventory, 260 units from the March 5 purchase, 110 units from the March 18 purchase, and 150 units from the March 25 purchase.

Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.

Gross Margin
Sales
Less: Cost of goods sold
Gross profit
FIFO
LIFO
Weighted
Average
Specific ID

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