Question

Problem 5-1A Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 55 units from the March 18 purchase and 95 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) FIFO LIFO Avg. Cost Spec. ID Gross Margin Sales Less: Cost of goods sold Gross profit

Answer 1

Gross profit is as calculated below:

Income Statement
For Month Ended March 31
	FIFO	LIFO	Weighted	Specific Identification
Sales
Mar 9	24,192	24,192	24,192	24,192
Mar 29	14,460	14,460	14,460	14,460
Total Sales	38,652	38,652	38,652	38,652
Cost of goods sold	24,027	25,077	24,457	24,817
Gross Profit	14,625	13,575	14,195	13,835

Working:

FIFO Perpetual Date Goods Puntlased Cost of goods sold 1 Units al Cost per unit Cost of purchase Units sold a cost per unit Cost of goods sold Units la | 1201 Endine Balance 1201 285 56.40 Marcos Ending Balance 355 120 5 1401 6168 Mar-09 160 56,40 9,024 75 Endine Balance Ending Invertory Cost per mit Ending balance 51.40! 6.168 6.168 5140 6.168 56.40 13.254 19.422 1235 56.40 56.40 61 40 4230 4230 4230 5.833 10.063 Mar-18 Ending Balance 170 63.40 10.778 4230 56.40 61 40 6340 Mar-25 Ending Balance 120 340 2011 170 10.778 20.841 1228 10.778 56.40 61.40 4230 4.605 61.40 3.40 75 6 Mar-29 Ending Balance 500 29.865 430 1 2 4.027 190 12.006 3355 LIFO-Perpetual Date Goods Pulased Cost of goods sold 1 Ending Inventory Unitsla Cost per unit Cost of purchase Units solala Cost per unit Cost of goods sold Units la Cost per unit Ending balance Mar-01 112011 51.40 6168 Endine Balance 1201 6168 5140 6168 Mar-06 56.40 13254 Endine Balance 19.402 132541 Mac09 5140 3855 Endine Balance 3955 5.833 51 40 Mar-18 6140 5833 Ending Balance 96881 170 63.40 10.778 51.40 3855 61.40 5833 Mar-25 63.40 10778 Endine Balance 20466 150 63.40 951075 5140 38551 os 61.40 5833 Mar-29 1268 Ending Balance 500 1 2 9865430 25077 1901 10956 Weighted-Perpetual Date Goods Purt based Cost of goods sold Ending Inventory JUnits @ Cost per unit Cost of purchase Units sold@Cost per unit Cost of goods sola! Units !@! Cost per uit Ending balance Mar-01 6.168 Ending Balance 6.168 235 56.40 13254 120 51.40 6.168 Mar-05 56.40 13 254 Ending Balance 19 422 120 120 LLLLLLLLLLLL 54.71 Endine Balance 95 6 1.40 5.833 Mar 18 Ending Balance 4103 4.103 4.103 58331 9.936 4.103 5933 10.778 20.714 11.576 -63.40 54.71 61 40 58.45 54.71 61.40 63.40 60.92 6092 10.778 Endtime Balance 170 3401 190 1501 6 0921 9.189 1201 1201 225! 111562 Mar-20 Endine Balance 500 29.865| 430 24.457 1901 11.576 Specific Identification-Perpetual Date Goods Pur Insed Cost of goods sold Ending Inventory Unitsa Cost per unit Cost of purchase Units sold a Cost per uit Cost of goods sold Unitsa Cost per unit Ending balance 51.40 6168 Mar-01 51.40 6168 2251 1 56401 13254 I 12011 5140 6161 56.40 13254 Mar-05 355 19.122 388 51.401 56.40 1692 Mar-09 4005 51.40 56.40 16921 61.40 98381 63.401 10778 5140 56.40 1692 61.40 5833 63.40 10778 Mar25 20616 55 6 1.40 3377 451 51.40 23131 95 6 3.401 60231 30 56.40 16921 401 61.40 2456 63.40 47551 M20500 298654301 24817 1901 11216 614 2315 লুল্ললল লললললললললললল 3. 89 2313