Problem 6-1A Perpetual: Alternative cost flows LO P1

[The following information applies to the questionsdisplayed below.]

Warnerwoods Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

110

units

@ $51.20 per unit

Mar.

5

Purchase

230

units

@ $56.20 per unit

Mar.

9

Sales

270

units

@ $86.20 per unit

Mar.

18

Purchase

90

units

@ $61.20 per unit

Mar.

25

Purchase

160

units

@ $63.20 per unit

Mar.

29

Sales

140

units

@ $96.20 per unit

Totals

590

units

410

units

Required:
1. Compute cost of goods available for sale andthe number of units available for sale.
2. Compute the number of units in endinginventory.
3. Compute the cost assigned to ending inventoryusing (a) FIFO, (b) LIFO, (c) weightedaverage, and (d) specific identification. For specificidentification, the March 9 sale consisted of 70 units frombeginning inventory and 200 units from the March 5 purchase; theMarch 29 sale consisted of 50 units from the March 18 purchase and90 units from the March 25 purchase.

4. Compute gross profit earned by the companyfor each of the four costing methods. For specific identification,the March 9 sale consisted of 70 units from beginning inventory and200 units from the March 5 purchase; the March 29 sale consisted of50 units from the March 18 purchase and 90 units from the March 25purchase. (Round weighted average cost per unit to twodecimals and final answers to nearest whole dollar.)