Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

DateActivitiesUnits Acquired at CostUnits Sold at Retail
March 1Beginning inventory100 units @ $50.00 per unit
March 5Purchase400 units @ $55.00 per unit
March 9Sales420 units @$85.00 per unit
March 18Purchase120 units @$60.00 per unit
March 25Purchase200 units @ $62.00 per unit
March 29

Sales

Totals

820 units

160 units @$95.00 per un.

580 units


Required

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) Weighted Average, and (D) specific identification. (Round all amounts to cents)

4. Compute gross profit earned by the company for each of the four costing methods in part 3.

Step by Step Solution

3.52 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

3d Calculate the c... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting with IFRS Fold Out Primer

Authors: John Wild

5th edition

978-0077408770, 77408772, 978-0077413804

More Books

Students also viewed these Accounting questions