FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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[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
March 1
March 5
March 9
March 18
March 25
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Sales
Less: Cost of goods sold
Gross profit
Purchase
Purchase
Sales
Totals
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 125
units from beginning inventory, 255 units from the March 5 purchase, 105 units from the March 18 purchase, and 145 units from the
March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
Specific ID
FIFO
Units Acquired at Cost
220 units @ $53.48 per unit
285 units@ $58.40 per unit
145 units@ $63.48 per unit
270 units @ $65.40 per unit
920 units
LIFO
Units Sold at Retail
380 units @ $88.40 per unit
250 units @ $98.40 per unit
630 units
Weighted
Average
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Transcribed Image Text: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 transactions for March. Date March 1 March 5 March 9 March 18 March 25 March 29 Gross Margin Activities Beginning inventory Purchase Sales Sales Less: Cost of goods sold Gross profit Purchase Purchase Sales Totals 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 125 units from beginning inventory, 255 units from the March 5 purchase, 105 units from the March 18 purchase, and 145 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Specific ID FIFO Units Acquired at Cost 220 units @ $53.48 per unit 285 units@ $58.40 per unit 145 units@ $63.48 per unit 270 units @ $65.40 per unit 920 units LIFO Units Sold at Retail 380 units @ $88.40 per unit 250 units @ $98.40 per unit 630 units Weighted Average
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