Question

[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. Units Sold at Retail Units Acquired at Cost 230 units @ $53.60 per unit 290 units @ $58.60 per unit 390 units @ $88.60 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 150 units @ $63.60 per unit 280 units @ $65.60 per unit 260 units @ $98.60 per unit 650 units 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 Weighted Average Specific Identification Sales Less: Cost of goods sold Gross profit

Answer 1

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Answers are highlighted in yellow: Highlighted COGS blue amount can be $+1/$-1 (e.g. 38253 or 38351) Solution: 4) Particulars Sales (390*88.60)+(260*98.60) Less: Cost of Goods sold Gross Profit $ $ $ FIFO LIFO Avg. Cost Spec. ID 60,190 $ 60,190 $ 60,190 $ 60,190 37,590 $ 39,410 $ 38,352 $ 39,040 22,600 $ 20,780 $ 21,838 $ 21,150 Working note: FIFO Date Mar.01 Mar.05 Mar.18 Mar.25 Goods purchased Cost of Goods Sold Ending Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 230 $ 53.60 $ 12,328 230 $ 53.60 $ 12,328 $ . 290 $ 58.60 $ 16,994 160 $ 58.60 $ 9,376 $ 150 $63.60 $ 9,540 130 $ 58.60 $ 7,618 | 20 $ 63.60 $ 1,272 280 $ 65.60 $ 18,368 130 $ 63.60 $ 8,268 280 $ 65.60 $ 18,368 950 $ 57,230 650 $ 37,590 3001 $ 19,640 LIFO Date Mar.01 Mar.05 Mar.18 Mar.25 Goods purchased Cost of Goods Sold Ending Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 230 $ 53.60 $ 12,328 100 $ 53.60 $ 5,360 130 $ 53.60 $ 6,968 290 $ 58.60 $ 16,994 290 $ 58.60 $ 16,994 150 $ 63.60 $ 9,540 $ - 150 $ 63.60 $ 9,540 280 $ 65.60 $ 18,368 260 $ 65.60 $ 17,056 20 $ 65.60 $ 1,312 950 $ 57,230 650 $ 39,410 300 $ 17,820

Avg. Date Mar.01 Mar.05 Mar.18 Mar.25 Goods purchased Cost of Goods Sold Ending Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 230 $ 53.60 $ 12,328 $ - 290 $ 58.60 $ 16,994 390 $ 56.39 $ 21,992 $ - 150 $ 63.60 $ 9,540 260 $ 62.93 $ 16,361 $ - 280 $ 65.60 $ 18,368 $ - 300 $ 62.93 $ 18,878 L 950 $ 57,230 650 $ 38,352 300 $ 18,878 Spec Date Mar.01 Mar.05 Mar.18 Mar.25 Goods purchased Cost of Goods Sold Ending Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 230 $ 53.60 $ 12,328 130 $ 53.60 $ 6,968 100 $ 53.60 $ 5,360 290 $ 58.60 $ 16,994 260 $ 58.60 $ 15,236 30 $ 58.60 $ 1,758 150 $ 63.60 $ 9,540 110 $ 63.60 $ 6,996 40 $ 63.60 $ 2,544 280 $ 65.60 $ 18,368 150 $ 65.60 $ 9,840 130 $ 65.60 $ 8,528 950 $ 57,230 650 $ 39,040 300 $ 18,190