Question
#17. Required information Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1 [The following information applies to the questions displayed below.] Warnerwoods Company uses a
#17. Required information
Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1
[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 | Activities | Units Acquired at Cost | Units Sold at Retail | ||||
---|---|---|---|---|---|---|---|
March 1 | Beginning inventory | 90 | units | @ $50.80 per unit | |||
March 5 | Purchase | 220 | units | @ $55.80 per unit | |||
March 9 | Sales | 250 | units | @ $85.80 per unit | |||
March 18 | Purchase | 80 | units | @ $60.80 per unit | |||
March 25 | Purchase | 140 | units | @ $62.80 per unit | |||
March 29 | Sales | 120 | units | @ $95.80 per unit | |||
Totals | 530 | units | 370 | units |
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 60 units from beginning inventory, 190 units from the March 5 purchase, 40 units from the March 18 purchase, and 80 units from the March 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 60 units from beginning inventory, 190 units from the March 5 purchase, 40 units from the March 18 purchase, and 80 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. (PLEASE SHOW THE NUMBER FOR SALE, COST OF GOODS SOLD, AND GROSS PROFIT FOR ALL 4, TY!)
Complete this question by entering your answers in the tabs below. Comnuto the rnct accinnad th ondinn inventory ucinn I TFn
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started