Required information

[The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual 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

80

units

@ $50.60 per unit

Mar.

5

Purchase

215

units

@ $55.60 per unit

Mar.

9

Sales

240

units

@ $85.60 per unit

Mar.

18

Purchase

75

units

@ $60.60 per unit

Mar.

25

Purchase

130

units

@ $62.60 per unit

Mar.

29

Sales

110

units

@ $95.60 per unit

Totals

500

units

350

units

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 55 units from beginning inventory and 185 units from the March 5 purchase; the March 29 sale consisted of 35 units from the March 18 purchase and 75 units from the March 25 purchase.

DO ALL 4!!!

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 55 units from beginning inventory and 185 units from the March 5 purchase; the March 29 sale consisted of 35 units from the March 18 purchase and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)