Warnerwoods Company uses a perpetual inventory system. It entered Into the follo

Question

Warnerwoods Company uses a perpetual inventory system. It entered Into the following purchases and sales transactions for March. Act Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 230 units $53.60 per unit 290 units $58.60 per unit 90 units$88-60 per unit 150 units $63.60 per unit 280 units $65.60 per unit 260 units e $98.60 per unit 650 units Totals 950 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 130 units from beginning inventory and 260 units from the March 5 purchase; the March 29 sale consisted co 110 units from the March 18 purchase and 150 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) ss Margin FIFOLIFO Avg. Cost Spec. ID Sales Less: Cost of goods sold Gross profit

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 230 53.6 12328 5-Mar 290 58.6 16994 230 53.6 12328 290 58.6 16994 9-Mar 230 53.6 12328 130 58.6 7618 160 58.6 9376 18-Mar 150 63.6 9540 130 58.6 7618 150 63.6 9540 25-Mar 280 65.6 18368 130 58.6 7618 150 63.6 9540 280 65.6 18368 29-Mar 130 58.6 7618 20 63.6 1272 130 63.6 8268 280 65.6 18368 TOTAL 720 44902 650 37590 300 19640 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 230 53.6 12328 5-Mar 290 58.6 16994 230 53.6 12328 290 58.6 16994 9-Mar 290 58.6 16994 130 53.6 6968 100 53.6 5360 18-Mar 150 63.6 9540 130 53.6 6968 150 63.6 9540 25-Mar 280 65.6 18368 130 53.6 6968 150 63.6 9540 280 65.6 18368 29-Mar 260 65.6 17056 130 53.6 6968 150 63.6 9540 20 65.6 1312 TOTAL 720 44902 650 39410 300 17820 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 230 53.6 12328 5-Mar 290 58.6 16994 230 53.6 12328 290 58.6 16994 Average 520 56.39 29322 9-Mar 390 56.39 21992 130 56.39 7330 18-Mar 150 63.6 9540 130 56.39 7330 150 63.6 9540 25-Mar 280 65.6 18368 130 56.39 7330 150 63.6 9540 280 65.6 18368 Average 560 62.925 35238 29-Mar 260 62.925 16360 300 62.925 18878 TOTAL 720 44902 650 38352 300 18878 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC SPECIFIC IDENTIFICATION METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance Oct1 230 53.6 12328 130 53.6 6968 100 53.6 5360 Purchasse 5-Mar 290 58.6 16994 260 58.6 15236 30 58.6 1758 18-Mar 150 63.6 9540 110 63.6 6996 40 63.6 2544 25-Mar 280 65.6 18368 150 65.6 9840 130 65.6 8528 TOTAL 950 57230 650 39040 300 18190 FIFO LIFO Average Specific Sales revenue (390 units @ 88.60+260 units @98.60) 60190 60190 60190 60190 Less: Cost of goods sold 37590 39410 38352 39040 Gross profit 22600 20780 21838 21150

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

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