March 1 Beginning inventory 190 units @ $52.80 per unit ...
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Accounting
March 1 Beginning inventory 190 units @ $52.80 per unit March 5 Purchase 270 units @ $57.80 per unit March 9 Sales 350 units @ $87.80 per unit March 18 Purchase 130 units @ $62.80 per unit March 25 Purchase 240 units @ $64.80 per unit March 29 Sales 220 units @ $97.80 per unit Totals 830 units 570 units
Required: 1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
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 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 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 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
| March 1 | Beginning inventory | 190 | units | @ $52.80 per unit | |||
|---|---|---|---|---|---|---|---|
| March 5 | Purchase | 270 | units | @ $57.80 per unit | |||
| March 9 | Sales | 350 | units | @ $87.80 per unit | |||
| March 18 | Purchase | 130 | units | @ $62.80 per unit | |||
| March 25 | Purchase | 240 | units | @ $64.80 per unit | |||
| March 29 | Sales | 220 | units | @ $97.80 per unit | |||
| Totals | 830 | units | 570 | units |
Required: 1. Compute cost of goods available for sale and the number of units available for sale.
2. Compute the number of units in ending inventory.
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 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 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 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
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