Problem 5-2AA Periodic: Alternative cost flows LO P3 [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Units Sold at Retail Units Acquired at Cost 140 units @ $75 per unit 440 units @ $80 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 460 units @ $110 per unit 200 units @ $85 per unit 280 units @ $87 per unit 240 units @ $120 per unit 700 units Totals 1,060 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 370 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 160 units from the March 25 purchase. X Answer is complete but not entirely correct. a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost per Cost per Cost per # of units Cost of Goods Available for Sale # of units sold Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit unit Beginning inventory 140 75.00 $ 10,500 0 $ 0.00 $ 0 140 X $ 75.00 $ 10,500 Purchases: March 5 440 $ 80.00 460 X $ 80.00 36,800 80.00 120 X $ 320 X $ March 18 200 $ 85.00 0 x $ 0.00 0 85.00 35,200 17,000 24,360 87,060 9,600 27,200 31,320 $ 78,620 March 25 280 $ 87.00 240 X $ 87.00 360 X $ 87.00 20,880 $57,680 Total 1,060 700 940 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Goods units unit Available for Sale Cost per # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 140 $ 75.00 10,500 0 140 75.00 $ 10,500 Beginning inventory Purchases: March 5 440 80.00 460 X $ 80.00 36,800 120 80.00 March 18 200 AAA 85.00 0 X 320 x 85.00 35,200 17,000 24,360 $ 87,060 9,600 27,200 31,320 $ 78,620 March 25 280 87.00 240 X $ 87.00 360 x 87.00 20,880 $57,680 Total 1,060 700 940 c) Average Cost Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Average Goods Cost per units Available unit for Sale # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory 140 $ 10,500 Beginning inventory Purchases: March 5 440 March 18 200 35,200 17,000 24,360 0.00 X $ 87,060 March 25 280 Total 1,060 $ 700 $ 82.13 $57,491 0 X $ 0.00 X $ 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost per Cost per # of units Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Ending Inventory unit unit 140 $ 75.00 $ 10,500 0 X $ 75.00 $ 0 140 X $ 75.00 $ 10,500 Beginning inventory Purchases: March 5 440 $ 80.00 460 X $ 80.00 36,800 120 X $ 80.00 March 18 200 $ 85.00 0 X $ 85.00 0 320 x $ 85.00 35,200 17,000 24,360 87,060 9,600 27,200 31,320 $ 78,620 March 25 280 $ 87.00 240 X $ 87.00 360 X $ 87.00 20,880 $57,680 Total 1,060 700 940 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.) FIFO LIFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit $ 0 $ 0 $ 0 $ 0
