Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales...
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Accounting
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
March 1
Beginning inventory
130
units
@ $51.60 per unit
March 5
Purchase
240
units
@ $56.60 per unit
March 9
Sales
290
units
@ $86.60 per unit
March 18
Purchase
100
units
@ $61.60 per unit
March 25
Purchase
180
units
@ $63.60 per unit
March 29
Sales
160
units
@ $96.60 per unit
Totals
650
units
450
units
Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 80 units from beginning inventory, 210 units from the March 5 purchase, 60 units from the March 18 purchase, and 100 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
Gross Margin
FIFO
LIFO
Weighted Average
Specific ID
Sales
Less: Cost of goods
Gross profit
Answer & Explanation
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