Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase March 9 Sales March 18 Purchase March 25 Purchase Units Acquired at Cost 100 units @ $50 per unit 400 units @ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit Units Sold at Retail 420 units @ $85 per unit March 29 Sales Totals 820 units 160 units @ $95 per unit 580 units For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date March 1 March 5 Activities Beginning inventory Purchase March 9 Sales March 18 Purchase March 25 Purchase Units Acquired at Cost 100 units @ $50 per unit 400 units @ $55 per unit 120 units @ $60 per unit 200 units @ $62 per unit Units Sold at Retail 420 units @ $85 per unit March 29 Sales Totals 820 units 160 units @ $95 per unit 580 units For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from the March 25 purchase. 4. Compute gross profit earned by the company for each of the four costing methods. Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar. Sales Less: Cost of goods sold Gross profit Weighted FIFO LIFO Average Specific Identification
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 3AP
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Step 1: Introduce to FIFO, LIFO and Weighted Average Method
VIEWStep 2: Working for cost of goods sold under FIFO
VIEWStep 3: Working for cost of goods sold under LIFO
VIEWStep 4: Working for cost of goods sold under Weighted Average Method
VIEWStep 5: Working for cost of goods sold under specific identification
VIEWStep 6: Working for sales revenue
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