accounting 498528
Aug 29, 2021 | Uncategorized
Warnerwoods 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 |
|
100 |
units |
@ $51.00/unit |
|
|
|
|
|
Mar. |
5 |
|
Purchase |
|
225 |
units |
@ $56.00/unit |
|
|
|
|
|
Mar. |
9 |
|
Sales |
|
|
|
|
|
260 |
units |
@ $86.00/unit |
|
Mar. |
18 |
|
Purchase |
|
85 |
units |
@ $61.00/unit |
|
|
|
|
|
Mar. |
25 |
|
Purchase |
|
150 |
units |
@ $63.00/unit |
|
|
|
|
|
Mar. |
29 |
|
Sales |
|
|
|
|
|
130 |
units |
@ $96.00/unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
560 |
units |
|
|
390 |
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. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round your average cost per unit to 2 decimal places.)
|
4. |
Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round average cost per unit to 2 decimal places.)
|