Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions...
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Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail March 1 March 5 Beginning inventory Purchase 130 units 430 units $65 per unit @ $70 per unit March 9 Sales 450 units @ $100 per unit March 18 Purchase March 25 Purchase 180 units 260 units @ $75 per unit @ $77 per unit March 29 Sales Totals 1,000 units 220 units @ $110 per unit 670 units For specific identification, units sold include 70 units from beginning inventory, 380 units from the March 5 purchase, 70 units from the March 18 purchase, and 150 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Note: Round your "average cost per unit" to 2 decimal places. a) Periodic FIFO Beginning inventory Purchases: March 5 Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of # of units Cost per unit Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 130 $65.00 $ 8,450 130 $65.00 $ 8,450 $ 0.00 $ 0 430 $ 70.00 30,100 March 18 180 $ 75.00 13,500 430 $ 70.00 $ 0.00 30,100 $ 0.00 0 0 $ 0.00 0 March 25 260 $77.00 20,020 0 $ 0.00 0 Total 1,000 $ 72,070 560 $ 38,550 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of # of units Cost per unit Goods # of units Available sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory for Sale Beginning inventory 130 $65.00 $ 8,450 $ 65.00 $ 0 $ 65.00 $ 0 Purchases: March 5 430 $70.00 30,100 $ 70.00 0 $ 70.00 0 March 18 180 $ $ 75.00 13,500 $ 75.00 0 S 75.00 0 March 25 260 $ 77.00 20,020 $ 77.00 0 $ 77.00 0 Total 1,000 $ 72,070 0 0 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific Identification $ $ 0 $ 0 $ 0 Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail March 1 March 5 Beginning inventory Purchase 130 units 430 units $65 per unit @ $70 per unit March 9 Sales 450 units @ $100 per unit March 18 Purchase March 25 Purchase 180 units 260 units @ $75 per unit @ $77 per unit March 29 Sales Totals 1,000 units 220 units @ $110 per unit 670 units For specific identification, units sold include 70 units from beginning inventory, 380 units from the March 5 purchase, 70 units from the March 18 purchase, and 150 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Note: Round your "average cost per unit" to 2 decimal places. a) Periodic FIFO Beginning inventory Purchases: March 5 Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of # of units Cost per unit Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 130 $65.00 $ 8,450 130 $65.00 $ 8,450 $ 0.00 $ 0 430 $ 70.00 30,100 March 18 180 $ 75.00 13,500 430 $ 70.00 $ 0.00 30,100 $ 0.00 0 0 $ 0.00 0 March 25 260 $77.00 20,020 0 $ 0.00 0 Total 1,000 $ 72,070 560 $ 38,550 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of # of units Cost per unit Goods # of units Available sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory for Sale Beginning inventory 130 $65.00 $ 8,450 $ 65.00 $ 0 $ 65.00 $ 0 Purchases: March 5 430 $70.00 30,100 $ 70.00 0 $ 70.00 0 March 18 180 $ $ 75.00 13,500 $ 75.00 0 S 75.00 0 March 25 260 $ 77.00 20,020 $ 77.00 0 $ 77.00 0 Total 1,000 $ 72,070 0 0 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific Identification $ $ 0 $ 0 $ 0
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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