Problem 6-1A Perpetual: Alternative cost flows 1 Wamerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 8o units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 100 units @ $50.00 per unit Mar. 5 Purchase 400 units @ $55.00 per unit Mar. 9 Sales 420 units @ $85.00 per unit Mar. 18 Purchase 120 units @ $60.00 per unit Mar. 25 Purchase 200 units @ $60.00 per unit Mar. 29 Sales 160 units @ $95.00 per unit Totals 820 units S80 units Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) Check (3) Ending inventory FIFO, S14 800, LIFO $13,680, WA, 514 352 4. Compute gross profit eamed by the company for each of the four costing methods in part 3. 14 UFO gross profit. $17.980 Problem 6-5A Lower of cost or market P2 A physical inventory of Liverpool Company taken at December 31 reveals the following Units Cost per Unt Market per Unit 90 345 260 326 $98 100 95 41 86 204 Hem Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarmi Locks Camera Binocular equipment Tripods Stables 480 291 150 93 310 84 322 212 70 185 170 84 105 Required 1. Compute the lower of cost or market for the inventory applied separately to each item. Check $273054 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account