Problem 6-2AA 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.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

200

units

@ $90 per unit

Mar.

5

Purchase

500

units

@ $95 per unit

Mar.

9

Sales

520

units

@ $125 per unit

Mar.

18

Purchase

320

units

@ $100 per unit

Mar.

25

Purchase

400

units

@ $102 per unit

Mar.

29

Sales

360

units

@ $135 per unit

Totals

1,420

units

880

units

For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 450 units from the March 5 purchase; the March 29 sale consisted of 140 units from the March 18 purchase and 220 units from the March 25 purchase.

Required. Part one. Compute cost of goods available for sale and the number of units available for sale.

Part two. Compute the number of units in ending inventory.

Part three. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

Part four. 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.)