5-1A (Algo) Perpetual: Alternative cost flows LO P3 [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. Sales Purchase Purchase Sales Activities Units Acquired at Cost Units Sold at Retail Beginning inventory 140 units Purchase 245 units $51.80 per unit $56.80 per unit 300 units $86.80 per unit 105 units 190 units $61.80 per unit $63.80 per unit Totals 680 units 170 units @ $96.80 per unit 470 units Problem 5-1A (Algo) Part 1 Required: 1. Compute cost of goods available for sale and the number of units available for sale. Answer is complete and correct. Cost of Goods Available for Sale Cost per # of units Unit Cost of Goods Available for Sale Beginning inventory 140 $ 51.80 7,252 Purchases: March 5 245 56.80 13,916 March 18 105 61.80 6,489 March 25 190 63.80 12,122 Total 680 39,779 Problem 5-1A (Algo) Part 2 2. Compute the number of units in ending inventory. Ending inventory Answer is complete and correct. 210 units Average Compute the cost assigned to ending inventory using FIFO. Goods Purchased Perpetual FIFO: Cost of Goods Sold Date # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units unit March 1 140 at Inventory Balance Cost per $51.80= $ 7,252.00 Inventory Balance 140 at $51.80= $ 7,252.00 March 5 245 at $56.80= S Total March 5 March 9 Total March 9 March 18 Total March 18 245 at $56.80 March 25 Total March 25, March 29 140 at 245 at $51.80 = $ $56.80 7,252.00 13,916.00 140 at $51.80= 245 at $56.80= $ 21,168.00 13,916.00 $ 21,168.00 $ 7,252.00 13,916.00 $ 21,168.00 Total March 25 March 29 Total March 29 Totals S 21,168.00 Perpetual FIFO Perpetual LIFO > Required information 4 Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P3 [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 Units Sold at Retail Activities Units Acquired at Cost Beginning inventory 140 units $51.80 per unit March 5 Purchase 245 units $56.80 per unit March 91 Sales 300 units $86.80 per unit March 18 March 25 March 29 Purchase Purchase Sales Totals 105 units 190 units $61.80 per unit $63.80 per unit 680 units 170 units $96.80 per unit: 470 units nces 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 85 units from beginning inventory, 215 units from the March 5 purchase, 65 units from the March 18 purchase, and 105 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID