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I have difficulties with solving these questions, 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification,
I have difficulties with solving these questions,
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase, the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round welghted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin FIFO LIFO Avg. Cost S pec. ID Sales Less: Cost of goods sold Gross profit Specific Identification: Goods Purchased # of Date Cost per units unit March 1 Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold unit March 5 225 @ $ 56.00 Inventory Balance # of units Cost per Inventory Balance 100 @ $51.00 = $ 5,100.00 100 @ $51.00 = $ 5,100.00 225 @ $56.00 = 12,600.00 $ 17,700.00 35 @ $51.00 = $ 1,785.00 @ $ 56.00 = $ 1,785.00 March 9 65 $ @ @ $ 51.00 $56.00 = = 3,315.00 0.00 3,315.00 $ March 18 March 25 March 29 Totals $ 3,315.00 Required information Problem 6-1A 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 Units Sold at Retail Units acquired at Cost 100 units @ $51.00 per unit 225 units @ $56.00 per unit 260 units @ $86.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 85 units @ $61.00 per unit 150 units @ $63.00 per unit 130 units @ $96.00 per unit 390 units 560 units Perpetual FIFO: Goods Purchased # of units unit Cost of Goods Sold per Cost of Goods Sold Date sold March 1 Inventory Balance # of units Co unit Balance 100 @ $ 51.00 = $ 5,100.00 @ $51.00 @ $56.00 March 5 225 @ $ 56.00 March 9 51.00 56.00 160 March 18 85 @ $31.00 @ $31.00 March 25 150 @ $63.00 @ @ $31.00 $63.00 March 29 51.00 56.00 61.00 63.00 Totals $ 0.00 Weighted Average Perpetual: Goods Purchased Date # of Cost per units unit March 1 Cost of Goods Sold # of units Cost per Cost of Goods sold unit Sold Inventory Balance # of units Cost per Inventory Balance unit 100 @ $51.00 = $ 5,100.00 100 @ $51.00 = $ 5,100.00 225 @ $ 56.00 = 12,600.00 325 @ $ 17,700.00 March 5 225 @ $ 56.00 Average March 9 March 18 Average March 25 March 29 Totals $ 0.00Step by Step Solution
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