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Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual...

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.

Date Activities Units Acquired at Cost Units Sold at Retail
Mar. 1 Beginning inventory 230 units @ $53.60 per unit
Mar. 5 Purchase 290 units @ $58.60 per unit
Mar. 9 Sales 390 units @ $88.60 per unit
Mar. 18 Purchase 150 units @ $63.60 per unit
Mar. 25 Purchase 280 units @ $65.60 per unit
Mar. 29 Sales 260 units @ $98.60 per unit
Totals 950 units 650 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.)


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Answer #1


Warner Woods FIFO Perpetual Purchase Per unit cost Total Cost Units Units Date Mar-01 Mar-05 Balance Per unit cost Total Cost

Weighted Average Perpetual Purchase Date Units Per unit cost Total Cost Units Mar-01 Mar-05 290 58.6 16994 Cost of goods sold

Gross Margin Sales Less:COGS Gross Profit FIFO 60190 -37590 22600 LIFO 60190 -39410 20780 Avg. Cost 60190 -38352 21838 Spec.

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