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 Beginning inventory Purchase Sales Purchase Purchase Sales Totals Sales Less: Cost of goods sold Gross profit FIFO Units Acquired at Cost 100 units @ $51.00 per unit 225 units @ $56.00 per unit LIFO 85 units @ $61.00 per unit 150 units @ $63.00 per unit 560 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65 units from beginning inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 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 260 units @ $86.00 per unit 130 units@ $96.00 per unit 390 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 Beginning inventory Purchase Sales Purchase Purchase Sales Totals Sales Less: Cost of goods sold Gross profit FIFO Units Acquired at Cost 100 units @ $51.00 per unit 225 units @ $56.00 per unit LIFO 85 units @ $61.00 per unit 150 units @ $63.00 per unit 560 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65 units from beginning inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 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 260 units @ $86.00 per unit 130 units@ $96.00 per unit 390 units
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
March 1
March 5
March 9
March 18
March 25
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
FIFO
Units Acquired at Cost
100 units @ $51.00 per unit
225 units @ $56.00 per unit
LIFO
85 units
150 units
560 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65
units from beginning inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
@ $61.00 per unit
@ $63.00 per unit
Weighted
Average
Units Sold at Retail
Specific ID
260 units @ $86.00 per unit
130 units @ $96.00 per unit
390 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F404882d8-9c43-40ab-86a8-8a92a0555f9d%2F5cf822b5-d44a-437c-b816-cd14c2406f30%2Fdd4efbo_processed.jpeg&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
March 1
March 5
March 9
March 18
March 25
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods sold
Gross profit
FIFO
Units Acquired at Cost
100 units @ $51.00 per unit
225 units @ $56.00 per unit
LIFO
85 units
150 units
560 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 65
units from beginning inventory, 195 units from the March 5 purchase, 45 units from the March 18 purchase, and 85 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
@ $61.00 per unit
@ $63.00 per unit
Weighted
Average
Units Sold at Retail
Specific ID
260 units @ $86.00 per unit
130 units @ $96.00 per unit
390 units
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VIEWStep 3: Computation of cost assigned to ending inventory using LIFO :
VIEWStep 4: Computation of cost assigned to ending inventory using Weighted Average:
VIEWStep 5: Computation of cost assigned to ending inventory using Specific Identification :
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