Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
REQUIRED INFO FOR PARTS 1 - 4 :
PART ONE
PART TWO
PART 3
PERPETUAL FIFO
PERPETUAL LIFO
WEIGHTED AVERAGE PERPETUAL
SPECIFIC IDENTIFICATION
PART FOUR
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! Required information [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. Units Sold at Retail Units Acquired at Cost 130 units @ $51.60 per unit 240 units @ $56.60 per unit Date March 1 March 5 March 9 March 18 March 25 March 29 Activities Beginning inventory Purchase Sales Purchase Purchase Sales 290 units @ $86.60 per unit 100 units 180 units @ $61.60 per unit @ $63.60 per unit 160 units@ $96.60 per unit 450 units Totals 650 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of Goods Available for Sale Cost of Goods Available # of units Unit for Sale Cost per Beginning inventory Purchases: March 5 March 18 March 25 Total 2. Compute the number of units in ending inventory. Ending inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and (d) specific identification. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. March 1 130 at $ 51.60 = $ 6,708.00 March 5 Total March 5 March 9 Total March 9 March 18 Total March 18 March 25 Total March 25 March 29 Total March 29 Totals $ 0.00 March 1 130 at $ 51.60 $ 6,708.00 March 5 Total March 5 March 9 Total March 9 March 18 Total March 18 March 25 Total March 25 March 29 Total March 29 Totals $ 0.00 Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Date Cost per # of units # of units sold Cost per unit Cost of Goods Sold # of units unit Inventory Balance Cost per unit Inventory Balance $ 51.60 = $ 6,708.00 March 1 130 at March 5 Average March 5 March 9 March 18 Average March 18 March 25 Average March 25 March 29 Totals $ 0.00 Specific Identification: Goods Purchased Cost of Goods Sold Inventory Balance Date Cost per Cost per # of units # of units sold Cost of Goods Sold # of units Cost per unit Inventory Balance unit March 1 130 at = II at = $ Goods Puchased $ 6,708 13,584 6,160 0.00 at = 0.00 March 5 240 unit $ 51.60 $ 56.60 $ 61.60 $ 63.60 at = at = at = $ 51.60 $ 56.60 $ 61.60 $ 63.60 $ 51.60 $ 56.60 $ 61.60 = $ 63.60 March 18 100 at = at = 0.00 at 0.00 March 25 180 at = $ 11,448 at = II at = Totals $ 0.00 0.00 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Gross Margin FIFO LIFO Weighted Average Specific ID Sales Less: Cost of goods sold Gross profit
