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#17. Required information Problem 5-1A (Algo) Perpetual: Alternative cost flows LO P1 [The following information...

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Accounting

#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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