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 transactionsfor March.DateActivitiesMar. 1 Beginning inventoryMar. 5 PurchaseMar. 9 SalesMar. 18 PurchaseMar. 25 PurchaseMar. 29 SalesTotalsUnits Acquired at Cost60 units @ $50.20 per unit205 units @ $55.20 per unit65 units @ $60.20 per unit110 units @ $62.20 per unit440 unitsUnits Sold at Retail220 units @ $85.20 per unit90 units @ $95.20 per unit310 units4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 saleconsisted of 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units fromthe March 18 purchase and 65 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and finalanswers to nearest whole dollar.)Gross MarginSalesLess: Cost of goods soldGross profitFIFOLIFOAvg. CostSpec. ID

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Description: 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 transactionsfor March.DateActivitiesMar. 1 Beginning in

Gross profit is the amount of money earned by the entity after deducting cost of goods sold from the…

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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Mar. Activities 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Units Acquired at Cost 60 units @ $50.20 per unit 205 units @ $55.20 per unit Units Sold at Retail 220 units @ $85.20 per unit 65 units @ $60.20 per unit 110 units @ $62.20 per unit 440 units 90 units @ $95.20 per unit 310 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 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase. (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 Avg. Cost Spec. ID

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Mar. Activities 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Units Acquired at Cost 60 units @ $50.20 per unit 205 units @ $55.20 per unit Units Sold at Retail 220 units @ $85.20 per unit 65 units @ $60.20 per unit 110 units @ $62.20 per unit 440 units 90 units @ $95.20 per unit 310 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 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase. (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 Avg. Cost Spec. ID

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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