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 Units Sold at Retail Units Acquired at Cost 110 units @ $51.20 per unit 230 units @ $56.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 270 units @ $86.20 per unit 90 units @ $61.20 per unit 160 units @ $63.20 per unit 140 units @ $96.20 per unit 410 units 590 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 70 units from beginning inventory and 200 units from the March 5 purchase, the March 29 sale consisted of 50 units from the March 18 purchase and 90 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 margin Sales Less: Cost of goods sold Gross profit FIFO 36742 22842 13900 LIFO 36742 23822 12920 Avg Cost Spec. ID 36742 36742 23243 23572 13499 13170

Goods Purchsed Units Unit Cost Perpetual FIFO Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 230 56.20 Mar-09 51.20 56.20 160 270 5632 8992 14624 Mar-18 90 61.20 Inventory Balance Units Unit Cost Total Cost 110 51.20 5632 110 51.20 5632 230 56.20 12926 340 18558 56.20 3934 0 3934 56.20 3934 61.20 5508 9442 56.20 3934 61.20 5508 160 63.20 10112 320 19554 20 61.20 1224 160 63.20 10112 180 11336 180 11336 Mar-25 160 63.20 Mar-29 70 70 56.20 61.20 3934 4284 8218 22842 140 410 Total

Goods Purchased Units Unit Cost Perpetual LIFO Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 230 56.20 | Inventory Balance Units Unit Cost Total Cost 110 51.20 5632 110 51.20 5632 230 56.20 12926 340 18558 7051.20 3584 Mar-09 230 40 270 56.20 51.20 12926 2048 14974 70 70 Mar-18 90 61.20 51.20 61.20 90 Mar-25 160 63.20 51.20 61.20 63.20 3584 3584 5508 9092 3584 5508 10112 19204 3584 5508 1264 10356 10356 | Mar-29 140 63.20 70 90 160 320 70 90 20 180 180 8848 51.20 61.20 63.20 140 410 8848 23822 Total

Date Mar-01 Mar-05 Mar-09 Mar-18 Weighted Average Inventory Cost method Goods Purchsed Cost of Goods sold Inventory Balance Units Unit Cost Units Unit Cost Total Cost Units Unit Cost Total Cost 110 51.20 5632 230 56.20 110 51.20 5632 230 56.20 12926 340 54.58 18558 270 54.58 14737 70 54.58 3821 90 61.20 70 54.58 3821 61.20 5508 160 58.30 9329 160 63.20 70 54.58 3821 90 61.20 5508 160 63.20 10112 320 60.75 19441 14060.75 8505 18060.75 10935 410 23243 180 109351 90 Mar-25 Mar-29 Total 480

Goods Purchsed Units Unit Cost Specific Identification method Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 230 56.20 Mar-09 70 200 270 51.20 56.20 3584 11240 14824 Mar-18 90 61.20 40 56.20 Inventory Balance Units Unit Cost Total Cost 110 51.20 5632 110 51.20 5632 230 56.20 12926 340 18558 40 51.20 2048 30 56.20 1686 70 3734 51.20 2048 1686 61.20 5508 9242 51.20 2048 30 56.20 1686 90 61.20 5508 63.20 101121 290 19354 40 51.20 2048 30 56.20 1686 40 | 61.20 2448 70 63.20 4424 180 10606 180 10606 160 Mar-25 160 63.20 160 Mar-29 50 90 61.20 63.20 3060 5688 140 410 8748 23572 Total