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Findex.html%71%2F registration% Secure https./ t.html?isReg-true&returnirl; http5%3A%2F%2Fconnect.mheducatior CHAPTER 5 HOMEWORK Required information The following information applies to the questions displayed below Warnerwoods Part 4 of 4 Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March 10 68 units. @ $5e.20 per uni 285 unitse $55.20 per unit Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 sales Mar. 18 Purchase Mar, 25 Purchase Mar. 29 Sales 229 units 585.28 per unit 65 units 560.28 per unit 110 units$62.29 per unit 98 unitse $95.20 per unit 310 units 448 units Print Totals consisted of 45 units from beginning inventory and 175 units from the March 5 purchase; the the March 18 purchase and 65 units answers to nearest whole dollar.) mpute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale March 29 sale consisted of 25 units from two decimals and final from the March 25 purchase. (Round weighted average cost per unit to Cost of goods sold Gross profit 11 of131" Next >

Explanation / Answer

As Per First in First Out (FIFO) :-

Particulars   Amount

Sale-9th March (220units * $85.20) $18744

Less:- Cost of goods sold

(beginning inventory 60units*$50.20) $3012

(Purchase on 5th march 160units*$55.20) $8832   $11844 $6900

Sale- 29th March (90units*$95.20) $8568

Less:- Cost of goods sold

(Remain from 5th March Purchase 45units*$55.20) $2484

(Purchase on 18th March 45units*$60.20) $2709 $5193 $3375  

$10275  

As Per Last in First Out (LIFO) :-

Particulars Amount

Sale-9th March (220units * $85.20) $18744

Less:- Cost of goods sold

(Purchase on 5th march 205units*$55.20) $11316

(beginning inventory 15units*$50.20) $753   $12069    $6675

Sale- 29th March (90units*$95.20) $8568

  Less:- Cost of goods sold

(Purchase on 25th March 90units*$62.20)    $5598 $2970  

$9645  

As Per Average Cost :-

Particulars   Amount

Sale-9th March (220units * $85.20) $18744

Less:- Cost of goods sold (see working note below) $11895   $6849

Sale- 29th March (90units*$95.20) $8568

  Less:- Cost of goods sold (see working note below) $5396 $3172 $10021 [ Working Note:- Average Cost

for sale on 9th March:- Cost of goods sold (220units*$54.07) $11895(approx.)

Quantity(units) Rate per unit Amount

Beginning Inventory 60 $50.20 $3012

Purchase on 5th March 205 $55.20 $11316

265 $14328   

Avg. Cost = $14328/265 = $54.07(approx.)

  

for sale on 29th March:- Cost of goods sold (90units*$59.95) $5396(approx.)

Quantity(units) Rate per unit Amount

Remain Inventory(265-220) 45 $54.07 $2433

Purchase on 18th March    65    $60.20   $3913

   Purchase on 25th March 110   $62.20 $6842

   220    $13188   

Avg. Cost = $13188/220 = $59.95(approx.)

As Per Specific Identification :-

Particulars   Amount

Sale-9th March (220units * $85.20) $18744

Less:- Cost of goods sold

(beginning inventory 45units*$50.20) $2259

(Purchase on 5th March 175units*$55.20) $9660 $11919    $6825

Sale- 29th March (90units*$95.20) $8568

  Less:- Cost of goods sold

(Purchase on 18th March 25units*$60.20) $1505   

(Purchase on 25th March 65units*$62.20)   $4043 $5548   $3020  

   $9845  

Notes- 1. In FIFO, we release such inventory first, that came first.

2. In LIFO, we release such inventory first, that came last.

3. In Average Cost, we calculate average cost of such inventory, that in stock on date of sale.

4. Specific Identification- as per given in question.

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