! Required information [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 bot Heat Mar. 1 Beginning inventory 165 units@ $55 per unit Mar. 5 Purchase 465 units@ $60 per unit Mar. 9 Sales 485 units @ $90 per unit Mar. 18 Purchase 250 units $65 per unit Mar 25 Purchase 330 units@ $67 per unit Mar 29 Sales 298 units@ $100 per unit Totals 1,210 units 775 units For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 415 units from the March 5 purchase, the March 29 sale consisted of 105 units from the March 18 purchase and 185 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) UFO. (c) weighted average, and (d) specific identification (Round your average cost per unit to 2 decimal places.) a) Periodic FIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale 165 $ 55.00 $ 9.075 #of units sold Cost per Cost per unit Cost of Goods Sold # of units in ending inventory unit Ending Inventory 165 S 5500 $9,075 S 0.005 0 Beginning inventory Purchases March 5 March 18 March 25 Total S 0 465 $ 60.00 250 S 65.00 330 1.210 27.900 16,250 0 $ 53 225 465 $ 60.00 145 $ 65,00 0 775 27.900 9,425 0 $ 46,400 $ $ 0.00 0.00 0.00 0 0 0 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost per of units Goods unit Available for Sale 165 $55.00 $ 0.075 # of units Cost per sold unit Cost of Goods Sold of units in ending inventory Cost per unit Ending Inventory $ 0 Beginning inventory Purchases March 5 March 18 0 465 S6000 250 S 6500 27,000 16.250 D b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Cost per Goods # of units unit Available for Sale 165 $ 55.00 S 9,075 Cost per # of units sold Cost of Goods Sold Cost per unit #of units in ending inventory unit Ending Inventory $ 0 Beginning inventory Purchases March 5 March 18 March 25 Total 465 $ 6000 250 $ 65.00 330 1.210 27 900 16.250 0 0 0 $ 53,225 0 0 c) Average Cost Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Average Cost of Goods # of units Cost per Available unit for Sale 165 $ 9,075 # of units sold Average Cost per Cost of Goods Sold # of units Average in ending Cost per inventory unit Ending Inventory Unit Beginning inventory Purchases March 5 March 18 March 25 Total 27.900 16.250 465 250 330 1.210 $ 53 225 $ 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost per Cost per Cost per Cost of # of units Goods unit Available for Sale 165 $55.00 $ 9,075 # of units sold Cost of Goods Sold unit # of units in ending Inventory unit Ending Inventory S 5500 $ 0 $ 55.00 $ 0 0 Beginning inventory Purchases March 5 March 18 March 25 Total 27,900 16,250 $ 60.00 $ 6500 $ 60.00 $ 6500 OOO 465 $ 60.00 250 $ 65,00 330 1.210 0 0 $ 53,225 0 4. Compute gross profit earned by the company for each of the four costing methods. places and final answers to nearest whole dollar.) FIFO LIFO Weighted Specific Average Identification 72,650 $ 72,650 $ 72,650 Sales A Less Cost of goods sold Gross profit 72,650 $ 46,400 26,250 $ S 72 650 $ 72,650 $ 72,650
