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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
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 | ||||
---|---|---|---|---|---|---|---|
March 1 | Beginning inventory | 105 | units | @ $40 per unit | |||
March 5 | Purchase | 405 | units | @ $45 per unit | |||
March 9 | Sales | 425 | units | @ $75 per unit | |||
March 18 | Purchase | 130 | units | @ $50 per unit | |||
March 25 | Purchase | 210 | units | @ $52 per unit | |||
March 29 | Sales | 170 | units | @ $85 per unit | |||
Totals | 850 | units | 595 | units |
For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 355 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 125 units from the March 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollarStep by Step Solution
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