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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 | 70 | units | @ $50.40 per unit | |||
March 5 | Purchase | 210 | units | @ $55.40 per unit | |||
March 9 | Sales | 230 | units | @ $85.40 per unit | |||
March 18 | Purchase | 70 | units | @ $60.40 per unit | |||
March 25 | Purchase | 120 | units | @ $62.40 per unit | |||
March 29 | Sales | 100 | units | @ $95.40 per unit | |||
Totals | 470 | units | 330 | units |
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 50 units from beginning inventory, 180 units from the March 5 purchase, 30 units from the March 18 purchase, and 70 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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