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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 Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Activities Purchase Purchase Sales Totals $ $ 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. FIFO Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit Answer is complete but not entirely correct. Weighted Average 20,770 20,770 $ 16,350 x 4,420 x S 100 units @ $61.60 per unit 180 units @ $63.60 per unit LIFO 650 units 20,770 $ 15,860 X 4,910 $ 20,420 x Specific ID $ 20,770 350 x $ Units Sold at Retail 28,600X -7,830 x 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 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 Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Activities Purchase Purchase Sales Totals $ $ 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. FIFO Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit Answer is complete but not entirely correct. Weighted Average 20,770 20,770 $ 16,350 x 4,420 x S 100 units @ $61.60 per unit 180 units @ $63.60 per unit LIFO 650 units 20,770 $ 15,860 X 4,910 $ 20,420 x Specific ID $ 20,770 350 x $ Units Sold at Retail 28,600X -7,830 x 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 units

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mansukhbhai 

[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 Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Purchase Purchase Sales Totals Activities S $ 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. X Answer is complete but not entirely correct. Weighted Average FIFO 20,770 x $ 16,350 Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit 4,420 X $ 100 units @ $61.60 per unit 180 units @ $63.60 per unit LIFO 650 units $ 20,770 15,860 4,910 $ 20,770 20,420 Specific ID 20,770 28,600 -7,830 x $ Units Sold at Retail 350 x $ 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 units
Transcribed Image Text:[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 Sales Less: Cost of goods sold Gross profit Beginning inventory Purchase Sales Purchase Purchase Sales Totals Activities S $ 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. X Answer is complete but not entirely correct. Weighted Average FIFO 20,770 x $ 16,350 Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit 4,420 X $ 100 units @ $61.60 per unit 180 units @ $63.60 per unit LIFO 650 units $ 20,770 15,860 4,910 $ 20,770 20,420 Specific ID 20,770 28,600 -7,830 x $ Units Sold at Retail 350 x $ 290 units @ $86.60 per unit 160 units @ $96.60 per unit 450 units
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