#17. Required information Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1 [The following information...
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#17. Required information
Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1
[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.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
March 1
Beginning inventory
90
units
@ $50.80 per unit
March 5
Purchase
220
units
@ $55.80 per unit
March 9
Sales
250
units
@ $85.80 per unit
March 18
Purchase
80
units
@ $60.80 per unit
March 25
Purchase
140
units
@ $62.80 per unit
March 29
Sales
120
units
@ $95.80 per unit
Totals
530
units
370
units
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 60 units from beginning inventory, 190 units from the March 5 purchase, 40 units from the March 18 purchase, and 80 units from the March 25 purchase.
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 60 units from beginning inventory, 190 units from the March 5 purchase, 40 units from the March 18 purchase, and 80 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. (PLEASE SHOW THE NUMBER FOR SALE, COST OF GOODS SOLD, AND GROSS PROFIT FOR ALL 4, TY!)
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