Anthony Company uses a perpetual inventory system. It entered into the following

Question

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 160 units @ $52.20/unit
Mar. 5 Purchase 255 units @ $57.20/unit
Mar. 9 Sales 320 units @ $87.20/unit
Mar. 18 Purchase 115 units @ $62.20/unit
Mar. 25 Purchase 210 units @ $64.20/unit
Mar. 29 Sales 190 units @ $97.20/unit

Totals 740 units 510 units



2.
value:
2 points

Required:
1.

Compute cost of goods available for sale and the number of units available for sale. (Omit the "$" sign in your response.)


Cost of goods available for sale $
Number of units available for sale units
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3.
value:
1 points

2. Compute the number of units in ending inventory.

Ending inventory units
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4.
value:
4 points

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 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 3 decimal places and inventory balances to the nearest dollar amount. Omit the "$" sign in your response.)

Ending
Inventory
(a) FIFO $
(b) LIFO $
(c) Weighted average $
(d) Specific identification $
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5.
value:
3 points

4.

Compute gross profit earned by the company for each of the four costing methods. (Round your per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

Gross profit
FIFO $
LIFO $
Weighted average $
Specific identification $

Explanation / Answer

Cost of Goods Available for Sale = 23,300 For specific identification, the March 9 sale consisted of 40 units from beginning inventory and 170 units from the March 5 purchase; 40 @ 50 = 2,000 COGS 170 @ 55 = 9,350 COGS the March 29 sale consisted of 20 units from the March 18 purchase and 60 units from the March 25 purchase. 20 @ 60 = 1,200 COGS 60 @ 62 = 3,720 COGS 2,000 + 9,350 + 1,200 + 3,720 = 16,270 Total COGS 23,300 - 16,270 = $7,030 Ending Inventory

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