Question
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
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 | ||||
---|---|---|---|---|---|---|---|
March 1 | Beginning inventory | 200 | units | @ $53.00 per unit | |||
March 5 | Purchase | 275 | units | @ $58.00 per unit | |||
March 9 | Sales | 360 | units | @ $88.00 per unit | |||
March 18 | Purchase | 135 | units | @ $63.00 per unit | |||
March 25 | Purchase | 250 | units | @ $65.00 per unit | |||
March 29 | Sales | 230 | units | @ $98.00 per unit | |||
Totals | 860 | units | 590 | units |
Problem 5-1A (Algo) Part 4
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 115 units from beginning inventory, 245 units from the March 5 purchase, 95 units from the March 18 purchase, and 135 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
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