Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transacti for March. Date March 1 Units Sold at Retail March 5 Activities Beginning inventory Purchase Units Acquired at Cost 100 units 400 units @ $50 per unit @ $55 per unit March 9 Sales 420 units @ $85 per unit March 18 Purchase March 25 Purchase 120 units 200 units @ $60 per unit @ $62 per unit March 29 Sales Totals 820 units 160 units 580 units @ $95 per unit 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold inc units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from March 25 purchase. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transacti for March. Date March 1 Units Sold at Retail March 5 Activities Beginning inventory Purchase Units Acquired at Cost 100 units 400 units @ $50 per unit @ $55 per unit March 9 Sales 420 units @ $85 per unit March 18 Purchase March 25 Purchase 120 units 200 units @ $60 per unit @ $62 per unit March 29 Sales Totals 820 units 160 units 580 units @ $95 per unit 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold inc units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from March 25 purchase. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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