Question

[The following information applies to the questions displayed below. Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March Units Sold at Retail Units Acquired at Cost 145 units @ $80.00 per unit 445 units @ $85.00 per unit 465 units @ $115.00 per unit Date Activities Mar. 1 Beginning Inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 210 units 290 units @ $90.00 per unit @ $92.00 per unit @ $125.00 per unit 250 units 715 units 1,090 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 165 units from the March 25 purchase.

2. Compute the number of units in ending inventory.

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.)

	FIFO	LIFO	Weighted Average	Specific Identification
Sales
Less: Cost of Goods Sold
Gross Profit

I need help with part 2 and 4. Explain how it is solved.

Answer 1

Number of Units in endinginvneoty (1090-715) = 375 Sales Revenue (465*115)+(250*125) Less: Cost of Goods Sold Gross Profit FIFO 84725 60675 24050 LIFO 84725 63855 20870 weighted average 84725 62319 22406 Specific Identification 84725 61905 22820

Periodic : FIFO Cost of Goods Sold Inventory Balance Goods Purchasd cost of Goods Available for Cost Per Unit sales Cost Per Cost of # of # of Units sold Unit Goods Sold Units Cost Per Unit Ending Inventory 145 80.00 11600 145 80 11600 # of Units Beginning inventory Purchases Mar-05 Mar-18 Mar-25 Totals 85.00 90.00 92.00 445 125 37825 112501 90 445 210 290 1090 85 37825 18900 26680 95005 92 90 92 290 76501 26680 34330 7151 606751 375 Periodic : LIFO Cost of Goods Sold Inventory Balance Goods Purchasd cost of Goods Available for Cost Per Unit sales Cost Per Cost of # of # of Units sold Unit Goods Sold Units Cost Per Unit Ending I nventory 145 11600 OV 80 145 80 11600 # of Units Beginning inventory Purchases Mar-05 Mar-18 Mar-25 Totals 857 19550 901 0 4451 2101 290 1090 37825 18900 26680 95005 215 210 290 7151 8518275 18900 92 26680 63855 90 92 92 375 31150

Periodic : average Cost Goods Purchasd cost of Goods Average Cost Available for per unit sales Cost of Goods Sold Average Cost per Cost of # of # of Units sold unit Goods Sold Units Inventory Balance Average Cost per Ending unit Inventory 145 80 11600 # of Units Beginning inventory Purchases Mar-05 Mar-18 181 Mar-251 Totals 445 210 290 10901 37825 18900 26680 95005 87.16 715 87.16 6 2319 375 87.16 32685 Periodic : Specific Identification Goods Purchasd Cost of Goods Sold Inventory Balance cost of Goods Available for Cost Per Cost of # of Cost Per Ending of Units Cost Per Unit sales # of Units sold Unit Goods Sold Units Unit Inventory Beginning inventory 145 11600 90 80 7200 55 801 4400 Purchases Mar-05 445 37825 375 31875 70 85 5950 Mar-18 2101 18900 85 90 7650 125 90 11250 Mar-25 2901 26680 165 92| 15180125 921 11500 Totals 10901 95005 715 61905 375 33100 85 90 92