Required information

Problem 6-2AA Periodic: Alternative cost flows LO P3

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

175

units

@ $65 per unit

Mar.

5

Purchase

475

units

@ $70 per unit

Mar.

9

Sales

495

units

@ $100 per unit

Mar.

18

Purchase

270

units

@ $75 per unit

Mar.

25

Purchase

350

units

@ $77 per unit

Mar.

29

Sales

310

units

@ $110 per unit

Totals

1,270

units

805

units

For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 415 units from the March 5 purchase; the March 29 sale consisted of 115 units from the March 18 purchase and 195 units from the March 25 purchase.

Problem 6-2AA Part 4

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)

Weighted Average Specific Identification FIFO LIFO Sales Less: Cost of goods sold Gross profit 0