Problem 5-1A 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 Date Activities Units Acquired at Cost 70 units@ $50.40 per unit 210 units @ $55.40 per unit Units Sold at Retail Mar. 1 Beginning inventory Purchase Mar. 230 units @ $85.40 per unit Mar. Mar. Sales 70 units @ $60.40 per unit 120 units@ $62.40 per unit 8 Purchase Mar. 25 Purchase 100 units @ $95.40 per unit Mar. 29 Sales 330 units Totals 470 units Problem 5-1A Part 1 Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of Goods Available for Sale Cost per Cost of Goods Available #of units for Sale Unit Beginning inventory Purchases: March 5 March 18 March 25 Total Problem 5-1A Part 2 2. Compute the number of units in ending inventory. units Ending inventory Problem 5-1A Part 3 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) Weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO Cost of Goods Sold Cost per Cost of Goods Sold Goods Purchased Inventory Balance Cost per unit Cost per unit #of units # of units sold Inventory Balance # of units Date unit 70@ $ 50.40 $3,528.00 March 1 March 5 March 9 March 18 March 25 March 29 Totals Weighted Average Perpetual: Cost of Goods Sold Goods Purchased Inventory Balance Cost per Cost of Goods unit Cost per unit Cost per unit # of units # of units Inventory Balance Date # of units Sold 70@ $50.40 March 1 3,528.00 March 5 Average March 9 March 18 Average March 25 March 29 Totals Specific Identification: Goods Purchased Cost of Goods Sold Inventory Balance Cost per # of units sold Cost per unit # of units Cost per unit Cost of Goods Sold Inventory Balance Date #of units unit 70@ $3,528.00 March 1 $50.40 March 5 March 9 March 18 March 25 March 29 Totals Problem 5-1A Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase. (Round weighted average cost per unit to two decimals.) Weighted Average Specific Identification LIFO FIFO Sales Less: Cost of goods sold Gross profit