ne/chronos/u-85e4d13e115179c17331679e7actf44938753b65/Downloads/Fundamenta. Q e

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ne/chronos/u-85e4d13e115179c17331679e7actf44938753b65/Downloads/Fundamenta. Q e conect Warnerwoods Company uses a perpetual inventory system. It entered into the following parchases and PROBLEM SET A sales transactions for March. (For specific identification. the March 9 sale consisted of 80 units from be- ginning inventory and 340 units from the March 5 purchase the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Problem 6 1 Perpetual: Altemativo cost flows Date Activitdes Units Acquired at Cost Units Sold at Retal P1 Mar. 1Beginning inventor Ma. 5 Purchase Mar. 9 Soles Max. 18 Purchase Mar, 25Purchase Mar. 29 Sales 00 units$50.00 per nit 00 units $55.00 per unt 420 urits o 85.00 pey unt 20 unts $60 00 per unit 00 unts a 562 00 pet 160 unts e 595 00 pet nt 820 ins Required 1. Compute cost of goods available foe sale and the number, of uns available for sale 2. Compute the number of units in ending inventory 3. Compute the cost assigned to ending inventory using (o)FIFO. ( LIFO, t) weighted average and s0 check aEn (d) specific identification. (Round all amousms io cents.) 4. Compute gross profir earned by the company for each of the four costing metiods in part 3 Chapter 6 Invear rs and Cost of Sales 1242

Explanation / Answer

Solution 1:

Solution 2:

Nos of units in ending inventory = Units available for sale - Unit sold = 820 - 580 = 240 units

Solution 3:

Solution 4:

Computation of units and cost of goods available for sale Date Qty Rate Cost of goods 1-Mar 100 $50.00 $5,000.00 5-Mar 400 $55.00 $22,000.00 19-Mar 120 $60.00 $7,200.00 25-Mar 200 $62.00 $12,400.00 Total 820 $46,600.00

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