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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
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 | 120 | units | @ $51.40 per unit | |||
March 5 | Purchase | 235 | units | @ $56.40 per unit | |||
March 9 | Sales | 280 | units | @ $86.40 per unit | |||
March 18 | Purchase | 95 | units | @ $61.40 per unit | |||
March 25 | Purchase | 170 | units | @ $63.40 per unit | |||
March 29 | Sales | 150 | units | @ $96.40 per unit | |||
Totals | 620 | units | 430 | units |
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75 units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
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