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 transactionsfor March.DateMarch 1March SMarch 9March 18March 25March 29Gross MarginActivitiesBeginning inventoryPurchaseSalesPurchasePurchaseSalesTotalsSalesLess: Cost of goodssoldGross profit6960FIFOLIFOUnits Acquired at Cost27.312 S27.31217.03717.817 x10,275 $ 9.495 S60 units265 units65 units110 units4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold includeunits from beginning inventory, 175 units from the March 5 purchase, 25 units from the March 18 purchase, and 65 units from the M25 purchase.Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.440 unitsWeightedAverage@ $50.20 per unit@$55.20 per unit17.29110,021@ $60.20 per unit@ $62.20 per unitSpecific IDS 27.312S17.487.00 d9.845Units Sold at Retail220 units @ $85.20 per unit90 units @ $95.20 per unit310 unitsPU

The cost of goods sold under the perpetual inventory system is that the inventory cost of each sales…

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 Purchase Purchase Sales Totals Sales Less: Cost of goods sold Gross profit $ S FIFO 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. 27,312 S 17,037 10,275 S LIFO Units Acquired at Cost 60 units @$50.20 per unit 205 units @ $55.20 per unit 65 units@ $60.20 per unit 110 units @$62.20 per unit 27.312 S 17.817 X 9.495 XS 440 units Weighted Average 27,312 17,291 Specific ID S 10,021 S Units Sold at Retail 27,312 17.467.00 X 9.845 220 units@ $85.20 per unit 90 units@ $95.20 per unit 310 units

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 Purchase Purchase Sales Totals Sales Less: Cost of goods sold Gross profit $ S FIFO 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. 27,312 S 17,037 10,275 S LIFO Units Acquired at Cost 60 units @$50.20 per unit 205 units @ $55.20 per unit 65 units@ $60.20 per unit 110 units @$62.20 per unit 27.312 S 17.817 X 9.495 XS 440 units Weighted Average 27,312 17,291 Specific ID S 10,021 S Units Sold at Retail 27,312 17.467.00 X 9.845 220 units@ $85.20 per unit 90 units@ $95.20 per unit 310 units

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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