A-7 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 2March 5March 9March 18March 25March 20Gross MarginActivitiesBeginning inventoryPurchaseSalesLass: Cost of goods soldGross profitPurchasePurchaseSalesTotalsFIFOUnits Acquired at Cost100 units @ $52.88 per unit270 units@ $57.50 per unitLIFO130 units @ 562.80 per unit240 units@ $64.800 per unit830 units4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 110units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 units from theMarch 25 purchase.Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.WeightedAverageUnits Sold at RetailSpecific ID350 units @ $87.80 per unit228 units @ $07.80 per unit570 units

Under the FIFO method, the oldest products in inventory have been sold first.Under the LIFO method,…

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 Sales Lass: Cost of goods sold Gross profit Purchase Purchase Sales Totals FIFO 100 units 270 units Units Acquired at Cost @ $52.88 per unit $57.50 per unit 130 units @ $62.00 per unit 240 units@ $64.80 per unit 830 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. LIFO Weighted Average Units Sold at Retail Specific ID 350 units@ $07.00 per unit 228 units @ $07.80 per unit 570 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 Sales Lass: Cost of goods sold Gross profit Purchase Purchase Sales Totals FIFO 100 units 270 units Units Acquired at Cost @ $52.88 per unit $57.50 per unit 130 units @ $62.00 per unit 240 units@ $64.80 per unit 830 units 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 110 units from beginning inventory, 240 units from the March 5 purchase, 90 units from the March 18 purchase, and 130 units from the March 25 purchase. Note: Round weighted average cost per unit to two decimals and final answers to nearest whole dollar. LIFO Weighted Average Units Sold at Retail Specific ID 350 units@ $07.00 per unit 228 units @ $07.80 per unit 570 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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Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
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