Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit Units Sold at Retail Beginning inventory Purchase Sales Purchase Purchase Sales March 9 March 18 240 units @ $85.60 per unit 75 units @ $60.60 per unit 130 units @ $62.60 per unit March 25 March 29 110 units @ $95.60 per unit Totals 500 units 350 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 55 units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Weighted Snonific ID

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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
80 units @ $50.60 per unit
215 units @ $55.60 per unit
Units Sold at Retail
March 1
March 5
March 9
March 18
Beginning inventory
Purchase
Sales
Purchase
240 units @ s85.60 per unit
75 units @ $60.60 per unit
130 units @ $62.60 per unit
March 25
Purchase
March 29
Sales
110 units @ $95.60 per unit
Totals
500 units
350 units
ok
Problem 5-1A (Algo) Part 4
it
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55
units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March
25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
nces
Weighted
Average
Gross Margin
FIFO
LIFO
Specific ID
Sales
Less: Cost of goods sold
Gross profit
Transcribed Image Text:Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 80 units @ $50.60 per unit 215 units @ $55.60 per unit Units Sold at Retail March 1 March 5 March 9 March 18 Beginning inventory Purchase Sales Purchase 240 units @ s85.60 per unit 75 units @ $60.60 per unit 130 units @ $62.60 per unit March 25 Purchase March 29 Sales 110 units @ $95.60 per unit Totals 500 units 350 units ok Problem 5-1A (Algo) Part 4 it 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55 units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) nces Weighted Average Gross Margin FIFO LIFO Specific ID Sales Less: Cost of goods sold Gross profit
Expert Solution
Step 1

Solution 4:

Computation of ending inventory COGS under FIFO - Warnerwoods Co
Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory
Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount
1-Mar 80 $50.60 $4,048.00 0 $0.00 $0.00 0 $0.00 $0.00 80 $50.60 $4,048.00
5-Mar 80 $50.60 $4,048.00 215 $55.60 $11,954.00 0 $0.00 $0.00 80 $50.60 $4,048.00
                    215 $55.60 $11,954.00
9-Mar 80 $50.60 $4,048.00 0 $0.00 $0.00 80 $50.60 $4,048.00 55 $55.60 $3,058.00
  215 $55.60 $11,954.00       160 $55.60 $8,896.00      
18-Mar 55 $55.60 $3,058.00 75 $60.60 $4,545.00 0 $0.00 $0.00 55 $55.60 $3,058.00
                    75 $60.60 $4,545.00
25-Mar 55 $55.60 $3,058.00 130 $62.60 $8,138.00 0 $0.00 $0.00 55 $55.60 $3,058.00
  75 $60.60 $4,545.00             75 $60.60 $4,545.00
                    130 $62.60 $8,138.00
29-Mar 55 $55.60 $3,058.00 0 $0.00 $0.00 55 $55.60 $3,058.00 20 $60.60 $1,212.00
  75 $60.60 $4,545.00       55 $60.60 $3,333.00 130 $62.60 $8,138.00
  130 $62.60 $8,138.00                  
Total             350   $19,335.00 150   $9,350.00

 

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