Chapter 6, Problem 2AP

Perpetual: Alternative cost flows P1

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase: the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.)

Date	Activities	Units Acquired at Cost	Units Sold at Retail
Mar 1	Beginning inventory	100 units @ $50.00 per unit
Mar. 5	Purchase	400 units @ $55.00 per unit
Mar 9	Sales		420 Units @ $85.00 Units
Mar, 18	Purchase	120 units @ (60.00 per unit
Mar 25	Purchase	200 units @ $62.03 per unit
Mar 29	Sales		160 units @ $05.00 per unit
	Totals	820 units	580 units

Required

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory

3. Compute the cost assigned to ending inventory using (a) FIFO. (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.)

4. Compute gross profit earned by the company for each of the four costing methods in part 3.

Refer to the information in Problem 6-1A and assume the periodic inventory system is used.

Problem 6-2A^A

Periodic: Alternative cost tows P3

Required

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO. (b) LIFO, (c) weighted average, and (c/) specific identification. (Round all amounts to cents.)

4. Compute gross profit earned by the company for each of the four costing methods in pan 3.