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 transaction for the month of 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 4.value Required: 1. Compute cost of goods available for sale and the number of units available for sale. 5.value: 2. Compute the number of units in ending inventory. 6.value: 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 per unit costs to 2 decimal places) 7.value: 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 your per unit costs to 2 decimal places and inventory balances.)

Explanation / Answer

the steps to get the answer are a+b-c=d

in the case of FIFO the first things sold are ite inventory items which first were added to inventory together with their associated costs, in the case of LIFO the reverse is true, for average cost you keep recomputing the weighted average cost after each transaction. For specific identification the units are sold with the cost associated with the transaction

you have to do the work we will not give you model answers but here is an example

a:Mar. 1 Beginning inventory 60 units @ $50.20/unit =
b:Mar. 5 Purchase 205 units @ $55.20/unit =
c:Mar. 9 Sales 220 units @ $85.20/unit

FIFO
c:60*$50.20+160* 55.20 =

LIFO
c:205*$55.20+15*50.20=

weighted average
c:220*((60*50.20)+(205*55.20)/265)=

Specific identification
c:45 * 50.20 + 175* 55.20 =

change the values

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.