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Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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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 S
March 9
March 18
March 25
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods
sold
Gross profit
69
60
FIFO
LIFO
Units Acquired at Cost
27.312 S
27.312
17.037
17.817 x
10,275 $ 9.495 S
60 units
265 units
65 units
110 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include
units from beginning inventory, 175 units from the March 5 purchase, 25 units from the March 18 purchase, and 65 units from the M
25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
440 units
Weighted
Average
@ $50.20 per unit
@$55.20 per unit
17.291
10,021
@ $60.20 per unit
@ $62.20 per unit
Specific ID
S 27.312
S
17.487.00 d
9.845
Units Sold at Retail
220 units @ $85.20 per unit
90 units @ $95.20 per unit
310 units
PU](https://content.bartleby.com/qna-images/question/c424496d-308b-4cdd-8730-6a6ef0a53c24/cea874ad-427c-4926-bb34-d330bced5bb3/w9c5bfc_thumbnail.jpeg)
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 S
March 9
March 18
March 25
March 29
Gross Margin
Activities
Beginning inventory
Purchase
Sales
Purchase
Purchase
Sales
Totals
Sales
Less: Cost of goods
sold
Gross profit
69
60
FIFO
LIFO
Units Acquired at Cost
27.312 S
27.312
17.037
17.817 x
10,275 $ 9.495 S
60 units
265 units
65 units
110 units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include
units from beginning inventory, 175 units from the March 5 purchase, 25 units from the March 18 purchase, and 65 units from the M
25 purchase.
Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.
440 units
Weighted
Average
@ $50.20 per unit
@$55.20 per unit
17.291
10,021
@ $60.20 per unit
@ $62.20 per unit
Specific ID
S 27.312
S
17.487.00 d
9.845
Units Sold at Retail
220 units @ $85.20 per unit
90 units @ $95.20 per unit
310 units
PU
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