Required Information (The following information applies to the questions displayed below.] Warnerwoody Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March. Date Activities March 1 March 5 Beginning inventory Purchase March 9 Sales March 18 March 25 March 29 Purchase Purchase Sales Units Acquired at Cost 120 units @ $51.48 per unit 235 units $56.48 per unit 95 units $61.40 per unit 170 units @ $63.40 per unit Units Sold at Retail 280 units $86.40 per unit Totals 620 units 150 units @ $96.40 per unit 430 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75 units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Gross Margin FIFO LIFO Weighted Average Specific ID Sales Less: Cost of goods sold Gross profit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(The following information applies to the questions displayed below.]
Warnerwoody Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions
for March.
Date
Activities
March 1
March 5
Beginning inventory
Purchase
March 9
Sales
March 18
March 25
March 29
Purchase
Purchase
Sales
Units Acquired at Cost
120 units @ $51.48 per unit
235 units $56.48 per unit
95 units $61.40 per unit
170 units @ $63.40 per unit
Units Sold at Retail
280 units $86.40 per unit
Totals
620 units
150 units @ $96.40 per unit
430 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75
units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the
March 25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
Gross Margin
FIFO
LIFO
Weighted
Average
Specific ID
Sales
Less: Cost of goods sold
Gross profit
Transcribed Image Text:Required Information (The following information applies to the questions displayed below.] Warnerwoody Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March. Date Activities March 1 March 5 Beginning inventory Purchase March 9 Sales March 18 March 25 March 29 Purchase Purchase Sales Units Acquired at Cost 120 units @ $51.48 per unit 235 units $56.48 per unit 95 units $61.40 per unit 170 units @ $63.40 per unit Units Sold at Retail 280 units $86.40 per unit Totals 620 units 150 units @ $96.40 per unit 430 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 75 units from beginning inventory, 205 units from the March 5 purchase, 55 units from the March 18 purchase, and 95 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. Gross Margin FIFO LIFO Weighted Average Specific ID Sales Less: Cost of goods sold Gross profit
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