Question

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 ts Sold at Retail Units Acquired at Cost 230 units @ $53.60 per unit 290 units $58.60 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar 25 Purchase Mer 29 Sales Totals 390 units @ $88.60 per unit 150 units 563.60 per unit 280 units @ $65.60 per unit 260 units @ $98.60 per unit 950 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 130 units from beginning inventory and 260 units from the March 5 purchase the March 29 sale consisted of 110 units from the March 18 purchase and 150 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 Avg. Cost Spec. ID Sa Less Cost of goods sold Grosso

Answer 1

	FIFO	LIFO	AVG Cost	Spec Identification
Sales	60,190.00	60,190.00	60,190.00	60190
Less Cost of Goods sold	37,590.00	39,410.00	38,354.00	39040
Gross Profit	22,600.00	20,780.00	21,836.00	21150

FIFO
	Purchase			Cos of Goods sold			Closing Stock
	QTY	Rate	Amount	QTY	Rate	Amount	QTY	Rate	Amount
Beginning Inv							230	53.6	12328
March 5 Purchase	290	58.6	16994				230	53.6	12328
							290	58.6	16994
							520		29322
March 9 sales				230	53.6	12328
				160	58.6	9376	130	58.6	16994
				390		21704	130		16994
	150	63.6	9540
March 18 purchase	150	63.6	9540				130	58.6	16994
							150	63.6	9540
							280		26534
March 25 purchase	280	65.6	18368				130	58.6	16994
	280		18368				150	63.6	9540
							280	65.6	18368
							560		44902
March 29 sales				130	58.6	7618
				130	63.6	8268	20	63.6	1272
				260		15886	280	65.6	18368
Total				650		37590	300		19640

LIFO
	Purchase			Cos of Goods sold			Closing Stock
	QTY	Rate	Amount	QTY	Rate	Amount	QTY	Rate	Amount
Beginning Inv							230	53.6	12328
March 5 Purchase	290	58.6	16994				230	53.6	12328
							290	58.6	16994
							520		29322
March 9 sales				290	58.6	16994
				100	53.6	5360	130	53.6	6968
				390		22354	130		6968
	150	63.6	9540
March 18 purchase	150	63.6	9540				130	53.6	6968
							150	63.6	9540
							280		16508

Weighted Average Method
	Purchase			Cos of Goods sold			Closing Stock
	QTY	Rate	Amount	QTY	Rate	Amount	QTY	Rate	Amount
Beginning Inv							230	53.6	12328
March 5 Purchase	290	58.6	16994				230	53.6	12328
							290	58.6	16994
							520		29322
March 9 sales				390	56.39	21,992.10
							130	56.39	7330.7
				390		21,992.10	130		7330.7
	150	63.6	9540
March 18 purchase	150	63.6	9540				130	56.39	7330.7
							150	63.6	9540
							280		16870.7
March 25 purchase	280	65.6	18368				130	56.39	7330.7
	280		18368				150	63.6	9540
							280	65.6	18368
							560		35238.7
March 29 sales				260	62.93	16361.8	300.00	62.93	18,879.00
				260		16361.8
Total				650		38,353.90	300.00		18,879.00

	Spec Identification
Cost of Goods sold units	Rate
130	53.6	6968
260	58.6	15236
110	63.6	6996
150	65.6	9840
Cost of Goods sold		39040