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

170

units

@ $60 per unit

Mar.

5

Purchase

470

units

@ $65 per unit

Mar.

9

Sales

490

units

@ $95 per unit

Mar.

18

Purchase

260

units

@ $70 per unit

Mar.

25

Purchase

340

units

@ $72 per unit

Mar.

29

Sales

300

units

@ $105 per unit

Totals

1,240

units

790

units

For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 190 units from the March 25 purchase.

a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale $ 10,200 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 170 $ 60.00 $ 0.00 $ 0 $ 0.00 $ 0 Beginning inventory Purchases: March 5 March 18 March 25 Total $ 65.00 $ 70.00 $ 72.00 $ $ 470 260 340 1,240 0.00 0.00 30,550 18,200 24,480 $ 83,430 $ $ $ 0.00 0.00 0.00 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available for Sale 170 $ 60.00 $ 10,200 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 470 260 340 1,240 $ $ $ 65.00 70.00 72.00 30,550 18,200 24,480 $ 83,430 c) Average Cost Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Average Goods # of units Cost per Available unit for Sale 170 $ 10,200 # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 470 260 340 1,240 30,550 18,200 24,480 $ 83,430 $ 0 $ 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale $ 10,200 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 170 $ 60.00 $ 60.00 $ $ 60.00 $ 0 Beginning inventory Purchases: March 5 March 18 March 25 Total 470 260 340 1,240 $ $ $ 65.00 70.00 72.00 30,550 18,200 24,480 $ 83,430 $ 65.00 $ 70.00 $ 72. 000 $ 65.00 $ 70.00 $ 72. 000 0 Problem 6-2AA Part 4 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 L IFO Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit