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 80 units @ $50.60 per unit 215 units $55.60 per unit 240 units@ $85.60 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 75 units @ $60.60 per unit 130 units $62.60 per unit 110 units @ $95.60 per unit 350 units 500 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 55 units from beginning inventory and 185 units from the March 5 purchase the March 29 sale consisted of 35 units fra the March 18 purchase and 75 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and fine answers to nearest whole dollar.) FIFO LIFO Avg. Cost Spec. ID Gross Margin Sales S Mlavt

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Mar							80	50.6	4048
05-Mar	215	55.6	11954				80	50.6	4048
							215	55.6	11954
09-Mar				80	50.6	4048
				160	55.6	8896	55	55.6	3058
18-Mar	75	60.6	4545				55	55.6	3058
							75	60.6	4545
25-Mar	130	62.6	8138				55	55.6	3058
							75	60.6	4545
							130	62.6	8138
29-Mar				55	55.6	3058	20	60.6	1212
				55	60.6	3333	130	62.6	8138
TOTAL	420		24637	350		19335	150		9350
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Mar							80	50.6	4048
05-Mar	215	55.6	11954				80	50.6	4048
							215	55.6	11954
09-Mar				215	55.6	11954
				25	50.6	1265	55	50.6	2783
18-Mar	75	60.6	4545				55	50.6	2783
							75	60.6	4545
25-Mar	130	62.6	8138				55	50.6	2783
							75	60.6	4545
							130	62.6	8138
29-Mar				110	62.6	6886	55	50.6	2783
							75	60.6	4545
							20	62.6	1252
TOTAL	420		24637	350		20105	150		8580
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Mar							80	50.6	4048
05-Mar	215	55.6	11954				80	50.6	4048
							215	55.6	11954
Average							295	54.24	16002
09-Mar				240	54.24	13018	55	54.24	2984
18-Mar	75	60.6	4545				55	54.24	2984
							75	60.6	4545
Average							130	57.92	7529
25-Mar	130	62.6	8138				130	57.92	7529
							130	62.6	8138
Averge							260	60.26	15667
29-Mar				110	60.26	6629	150	60.26	9038
TOTAL	420		24637	350		19647	15	60.26	9038
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL Specific Identification METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
01-Mar							80	50.6	4048
05-Mar	215	55.6	11954				80	50.6	4048
							215	55.6	11954
09-Mar				55	50.6	2783	25	50.6	1265
				185	55.6	10286	30	55.6	1668
18-Mar	75	60.6	4545				25	50.6	1265
							30	55.6	1668
							75	60.6	4545
25-Mar	130	62.6	8138				25	50.6	1265
							30	55.6	1668
							75	60.6	4545
							130	62.6	8138
29-Mar				35	60.6	2121	25	50.6	1265
				75	62.6	4695	30	55.6	1668
							40	60.6	2424
							55	62.6	3443
TOTAL	420		24637	350		19885	150		8800
Gross Profit
				FIFO	LIFO	Average	Specific
Sales revenue (240*85.60+110*95.60)	31060	31060	31060	31060
Less: Cost of Goods sold		19335	20105	19647	19885
Gross Profit			11725	10955	11413	11175