[The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory...
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Accounting
[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
100
units
@ $51.00 per unit
Mar.
5
Purchase
225
units
@ $56.00 per unit
Mar.
9
Sales
260
units
@ $86.00 per unit
Mar.
18
Purchase
85
units
@ $61.00 per unit
Mar.
25
Purchase
150
units
@ $63.00 per unit
Mar.
29
Sales
130
units
@ $96.00 per unit
Totals
560
units
390
units
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
FIFO LIFO Avg. Cost Spec. ID Gross Margin Sales Less: Cost of goods sold Gross profit
Answer & Explanation
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