Anthony 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 |
50 units @ $50/unit |
|
|
Mar. 5 |
Purchase |
200 units @ $55/unit |
|
|
Mar. 9 |
Sales |
210 units @ $85/unit |
|
|
Mar. 18 |
Purchase |
60 units @ $60/unit |
|
|
Mar. 25 |
Purchase |
100 units @ $62/unit |
|
|
Mar. 29 |
Sales |
80 units @ $95/unit |
|
|
Totals |
410 units |
290 units |
Required
1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
3. Compute the cost assigned to ending inventory using
(a) FIFO,
(b) LIFO,
(c) weighted average and
(d) specific identification. (Round per unit costs to three decimals, but inventory balances to the dollar.)
For specific identification, the March 9 sale consisted of 40 units from beginning inventory and 170 units from the March 5 purchase; the March 29 sale consisted of 20 units from the March 18 purchase and 60 units from the March 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods in part 3.