Question

# [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system....

[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 Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 70 units @ \$50.40 per unit Mar. 5 Purchase 210 units @ \$55.40 per unit Mar. 9 Sales 230 units @ \$85.40 per unit Mar. 18 Purchase 70 units @ \$60.40 per unit Mar. 25 Purchase 120 units @ \$62.40 per unit Mar. 29 Sales 100 units @ \$95.40 per unit Totals 470 units 330 units

Problem 5-2AA Part 3

1. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase.

2. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase.

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

 Purchase Sale Ending Inventory Date Units Rate Cost Units Rate Cost Units Rate Cost Beginning 70 \$    50.40 \$    3,528 Mar 5 210 \$    55.40 \$ 11,634 70 \$    50.40 \$    3,528 210 \$    55.40 \$ 11,634 Mar 9 50 \$                          50.40 \$    2,520 20 \$    50.40 \$    1,008 180 \$                          55.40 \$    9,972 30 \$    55.40 \$    1,662 Mar 18 70 \$    60.40 \$    4,228 20 \$    50.40 \$    1,008 30 \$    55.40 \$    1,662 70 \$    60.40 \$    4,228 Mar 25 120 \$    62.40 \$    7,488 20 \$    50.40 \$    1,008 30 \$    55.40 \$    1,662 70 \$    60.40 \$    4,228 120 \$    62.40 \$    7,488 Mar 29 30 \$                          60.40 \$    1,812 20 \$    50.40 \$    1,008 70 \$                          62.40 \$    4,368 30 \$    55.40 \$    1,662 40 \$    60.40 \$    2,416 50 \$    62.40 \$    3,120 Total \$ 18,672 \$    8,206