Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions...
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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities March 1 March 5 Beginning inventory Purchase Units Acquired at Cost 110 units @ $51.20 per unit 230 units @ $56.20 per unit Units Sold at Retail March 9 Sales 270 units @ $86.20 per unit March 18 March 25 March 29 Purchase Purchase Sales 90 units @$61.20 per unit 160 units @$63.20 per unit Totals 590 units 140 units @ $96.20 per unit 410 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 70 units from beginning inventory, 200 units from the March 5 purchase, 50 units from the March 18 purchase, and 90 units from the March 25 purchase. Note: 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 Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities March 1 March 5 Beginning inventory Purchase Units Acquired at Cost 110 units @ $51.20 per unit 230 units @ $56.20 per unit Units Sold at Retail March 9 Sales 270 units @ $86.20 per unit March 18 March 25 March 29 Purchase Purchase Sales 90 units @$61.20 per unit 160 units @$63.20 per unit Totals 590 units 140 units @ $96.20 per unit 410 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 70 units from beginning inventory, 200 units from the March 5 purchase, 50 units from the March 18 purchase, and 90 units from the March 25 purchase. Note: 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
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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