Question

Saved Required Informatlon Problem 6-1A Perpetual: Alternative cost flows LO P1 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. Activities Units Aequired at Cost 100 units@ 두50.00 per unit 400 units $55.00 per unit Units 3old at Reta Mar. lBeginning inventory Mar. S Purchase Mar. 9 Sales Mar 18 Purchase Max. 25 Purchase Mar. 29 Sales 420 units 85.00 per unie 120 unite 60.00 pex unie 200 uni $62.00 per unit 160 units@ 釒95.00 per unis 580 units Totals 820 uniES Problem 6-1A Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific Identfication, the March 9 sale consisted of 80 units from beginning Inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 unilts from the March 25 purchase. (Round welghted average cost per unit to two declmals.) ss Margirn FIFO LIFO Avg. Cost pec, ID Sales Less Cost of goods sold Gross profit

Answer 1

	CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER FIFO METHOD
			PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
	Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
	Mar , 01	Opening Inventory							100	$50	$5,000
	Mar , 05	Purchases	400	$55	$22,000				100	$50	$5,000
									400	$55	$22,000
						100	$50	$5,000
;	Mar, 09	Sales				320	$55	$17,600	80	$55	$4,400
	Mar, 16	Purchases	120	$                     60.00	$7,200				80	$55	$4,400
									120	$                    60.00	$7,200
	Mar, 25	Purchases	200	$                     62.00	$12,400				80	$55	$4,400
									120	$                    60.00	$7,200
									200	$                    62.00	$12,400
	Mar, 29	Sales				80	$55	$4,400
						80	$             60.00	$4,800	40	$                    60.00	$2,400
									200	$                    62.00	$12,400
			720			580		$31,800	240		$14,800
		Cost of Ending inventory=	$14,800
		Cost o Goods Sold =	$31,800
	CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER LIFO METHOD
			PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
	Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
	Mar , 01	Opening Inventory							100	$50	$5,000
	Mar , 05	Purchases	400	$55	$22,000				100	$50	$5,000
									400	$55	$22,000
						400	$55	$22,000
	Mar, 09	Sales				20	$50	$1,000	80	$50	$4,000
	Mar, 16	Purchases	120	$                     60.00	$7,200				80	$50	$4,000
									120	$                    60.00	$7,200
	Mar, 25	Purchases	200	$                     62.00	$12,400				80	$50	$4,000
									120	$                    60.00	$7,200
									200	$                    62.00	$12,400
	Mar, 29	Sales				160	$             62.00	$9,920	40	$                    62.00	$2,480
									120	$                    60.00	$7,200
									80	$50	$4,000
			720			580		$32,920	240		$13,680
		Cost of Ending inventory=	$13,680
		Cost o Goods Sold =	$32,920
	CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER WEIGHTED AVERAGE COST
			PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
	Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
	Mar , 01	Opening Inventory							100	$50	$5,000
	Mar , 05	Purchases	400	$55	$22,000				500	$54	$27,000
	Mar, 09	Sales				420	$54	$22,680	80	$54	$4,320
	Mar, 16	Purchases	120	$                     60.00	$7,200				200	$57.60	$11,520
	Mar, 25	Purchases	200	$                     62.00	$12,400				400	$59.80	$23,920
	Mar, 29	Sales				160	$             59.80	$9,568	240	$59.80	$14,352
			720			580		$32,248	240		$14,352
		Cost of Ending inventory=	$14,352
		Cost o Goods Sold =	$32,248
	CALCULATION OF COST OF ENDING INVENTORY AND COST OF GOODS SOLD UNDER SPECIFIC IDENTIFICATION
			PURHASES			COST OF GOODS SOLD			CLOSING BALANCE
	Date	Particulars	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost	Units (A)	Rate Per unit	Total Cost
	Mar , 01	Opening Inventory / Sales	100	$50	$5,000				100	$50	$5,000
	Mar , 05	Purchases	400	$55	$22,000				100	$50	$5,000
									400	$55	$22,000
	Mar, 09	Sales				80	$50	$4,000
						340	$55	$18,700	20	$50	$1,000
									60	$55	$3,300
	Mar, 18	Purchases	120	$                     60.00	$7,200				20	$50	$1,000
									60	$55	$3,300
									120	$                    60.00	$7,200
	Mar, 25	Purchases	200	$                     62.00	$12,400				20	$50	$1,000
									60	$55	$3,300
									120	$                    60.00	$7,200
									200	$                    62.00	$12,400
	Mar, 29	Sales				40	$             60.00	$2,400
						120	$             62.00	$7,440	20	$50	$1,000
									60	$55	$3,300
									80	$                    60.00	$4,800
									80	$                    62.00	$4,960
			820			580		$32,540	240		$14,060
		Cost of Ending inventory=	$14,060
		Cost o Goods Sold =	$32,540
				Cost of Ending Inventory	Cost of Goods Sold
		FIFO		$             14,800.00	$31,800
		LIFO		$             13,680.00	$32,920
		Weighted aVerage Cost		$             14,352.00	$32,248
		Specific Identification		$             14,060.00	$32,540
		INCOME STATEMENT	Specific Identification	Weighted Average	FIFO	LIFO
		Sales
		Mar, 09 Sales	$35,700	$35,700	$35,700	$35,700
		Mar, 18 Sales	$15,200	$15,200	$15,200	$15,200
		Total Sales	$50,900	$50,900	$50,900	$50,900
		LEsS: Cost of Goods Sold	$32,540	$32,248	$31,800	$32,920
		Gross Profit	$18,360	$18,652	$19,100	$17,980