Problem 6-1A Perpetual: Alternative cost flows LO P1 The following information a
ID: 2596145 • Letter: P
Question
Problem 6-1A Perpetual: Alternative cost flows LO P1 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. Activities Units Sold at Retail Units Acquired at Cost 90 units $50.80 per unit 220 units $55.80 per unit Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 250 units $85.80 per unit 80 units $60.80 per unit 140 units $62.80 per unit 120 units $95.80 per unit 370 units Totals 530 units Problem 6-1A Part 4 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 190 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 80 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) LIFO Spec. ID Gross Margin Sales Less: Cost of goods sold Gross profit FIFO Avg. CostExplanation / Answer
FIFO METHOD
DATE
PURCHASE
SALES
CLOSING INVENTORY
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
MAR 1
OPERNING INVENTORY
90
50.80
4572
MAR 5
220
55.80
12276
310
(220*55.80)+(50.80*90)
16848
MAR 9
250
85.80
21450
60
55.80
3348
MAR 18
80
60.80
4864
140
(60.80*80)+(55.80*60)
8212
MAR25
140
62.80
8792
280
(60.80*80)+(55.80*60)+(140*62.80)
17004
MAR 29
120
95.80
11496
160
(20*60.80)+(140*62.80)
10,008
TOTAL
25932
32946
CL-INVENTORY
10008
ADD -SALE
32946
42954
LESS PURCHASE
25932
LESS OP -INVENTORY
4572
GROSS PROFIT
12450
LIFO METHOD
DATE
PURCHASE
SALES
CLOSING INVENTORY
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
MAR 1
OPERNING INVENTORY
90
50.80
4572
MAR 5
220
55.80
12276
310
(220*55.80)+(50.80*90)
16848
MAR 9
250
85.80
21450
60
50.80
3048
MAR 18
80
60.80
4864
140
(60.80*80)+(50.80*60)
7912
MAR25
140
62.80
8792
280
(60.80*80)+(50.80*60)+(140*62.80)
16704
MAR 29
120
95.80
11496
160
(50.80*60)+(60.80*80)+(62.80*20)
9168
TOTAL
25932
32946
CL-INVENTORY
9168
ADD -SALE
32946
42114
LESS PURCHASE
25932
LESS OP -INVENTORY
4572
GROSS PROFIT
11610
AVERAGE METHOD
DATE
PURCHASE
SALES
CLOSING INVENTORY
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
MAR 1
OPERNING INVENTORY
90
50.80
4572
MAR 5
220
55.80
12276
310
54.35
16848
MAR 9
250
85.80
21450
60
54.35
3261
MAR 18
80
60.80
4864
140
58.04
8125
MAR25
140
62.80
8792
280
60.42
16917
MAR 29
120
95.80
11496
160
60.42
9667
TOTAL
25932
32946
CL-INVENTORY
9667
ADD -SALE
32946
42613
LESS PURCHASE
25932
LESS OP -INVENTORY
4572
GROSS PROFIT
12109
APECIFIC IDENTIFICATION METHOD
DATE
PURCHASE
SALES
CLOSING INVENTORY
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
MAR 1
OPERNING INVENTORY
90
50.80
4572
MAR 5
220
55.80
12276
310
(90*50.80)+(220*55.80)
16848
MAR 9
250
85.80
21450
60
(30*50.80)+(30*55.80)
3198
MAR 18
80
60.80
4864
140
(30*50.80)+(30*55.80)+(80*60.80)
8062
MAR25
140
62.80
8792
280
(30*50.80)+(30*55.80)+(80*60.80)+(140*62.80)
16854
MAR 29
120
95.80
11496
160
(30*50.80)+(30*55.80)+(40*60.80)+(60*62.80)
9398
TOTAL
25932
32946
CL-INVENTORY
9398
ADD -SALE
32946
42344
LESS PURCHASE
25932
LESS OP -INVENTORY
4572
GROSS PROFIT
11840
FIFO METHOD
DATE
PURCHASE
SALES
CLOSING INVENTORY
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
UNIT
PRICE
GROSS
MAR 1
OPERNING INVENTORY
90
50.80
4572
MAR 5
220
55.80
12276
310
(220*55.80)+(50.80*90)
16848
MAR 9
250
85.80
21450
60
55.80
3348
MAR 18
80
60.80
4864
140
(60.80*80)+(55.80*60)
8212
MAR25
140
62.80
8792
280
(60.80*80)+(55.80*60)+(140*62.80)
17004
MAR 29
120
95.80
11496
160
(20*60.80)+(140*62.80)
10,008
TOTAL
25932
32946
CL-INVENTORY
10008
ADD -SALE
32946
42954
LESS PURCHASE
25932
LESS OP -INVENTORY
4572
GROSS PROFIT
12450