Required Information The following information applies to the questions displaye

Question

Required Information The following information applies to the questions displayed below Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. DateActivities Mar. 1 Beginning Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales its Acquired at Cost Units Sold at Retail 120 units $51.40 per unit 235 units $56.40 pen 280 units s86.40 per unit 95 unitse $61.40 per unit 170 units $63.40 per 150 units s96.40 per 430 units Totals unit 620 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 75 units from beginning inventory and 205 units from the March 5 purchase: the March 29 sale consisted of 55 units from the March 18 answers to nearest whole doller.) purchase and 95 units from the March 25 purchase. (Round welghted average cost per unlt to two declmals and final FIF Avg Cost pee. 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 120 51.4 6168 5-Mar 235 56.4 13254 120 51.4 6168 235 56.4 13254 9-Mar 120 51.4 6168 75 56.4 4230 160 56.4 9024 18-Mar 95 61.4 5833 75 56.4 4230 95 61.4 5833 25-Mar 170 63.4 10778 75 56.4 4230 95 61.4 5833 170 63.4 10778 29-Mar 75 56.4 4230 20 61.4 1228 75 61.4 4605 170 63.4 10778 TOTAL 500 29865 430 24027 190 12006 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 120 51.4 6168 5-Mar 235 56.4 13254 120 51.4 6168 235 56.4 13254 9-Mar 235 56.4 13254 75 51.4 3855 45 51.4 2313 18-Mar 95 61.4 5833 75 51.4 3855 95 61.4 5833 25-Mar 170 63.4 10778 75 51.4 3855 95 61.4 5833 170 63.4 10778 29-Mar 150 63.4 9510 75 51.4 3855 95 61.4 5833 20 63.4 1268 TOTAL 500 29865 430 25077 190 10956 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 120 51.4 6168 5-Mar 235 56.4 13254 120 51.4 6168 235 56.4 13254 Average 355 54.71 19422 9-Mar 280 54.71 15312 75 54.71 4110 18-Mar 95 61.4 5833 75 54.71 4110 95 61.4 5833 25-Mar 170 63.4 10778 75 54.71 4110 95 61.4 5833 170 63.4 10778 Average 340 60.94 20721 29-Mar 150 60.94 9141 190 60.94 11580 TOTAL 500 29865 430 24453 190 11580 STATEMENT SHOWING INVENTORY RECORD UNDER SPECIFIC IDENTIFICATION METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Balance 120 51.4 6168 75 51.4 3855 45 51.4 2313 Purchasse 5-Mar 235 56.4 13254 205 56.4 11562 30 56.4 1692 18-Mar 95 61.4 5833 55 61.4 3377 40 61.4 2456 25-Mar 170 63.4 10778 95 63.4 6023 75 63.4 4755 TOTAL 620 36033 430 24817 190 11216 FIFO LIFO Average Specific Sales (280 units @86.40+150 uits @296.40) 38652 38652 38652 38652 Less: Cost of Goods sold 24027 25077 24453 24817 Gross profit 14625 13575 14199 13835

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