Reference no: EM132531301

Westlaw Company sells many products. Redwild is one of its popular items. Below is an analysis of the inventory purchases and sales of Redwild for the month of March. Westlaw Company uses the perpetual inventory system.

Purchases                                      Sales

Units                                          Unit Cost               Units Selling                        Price/Unit

3/1 Beginning inventory          100                          $40

3/3 Purchase                         60                        $50

3/4 Sales 60 $80

3/10 Purchase                                200                                               $55

3/16 Sales                                                          90                           $90

3/19 Sales                                                             70                      $90

3/25 Sales                                                                60                    $90

3/30 Purchase                                                              40                 $60

Question (a) Using the FIFO assumption, calculate the amount charged to cost of goods sold for March. (Show computations).

Question (b) Using the weighted-average method, calculate the amount assigned to the inventory on hand on March 31. (Show computations).

Question (c) Using the LIFO assumption, calculate the amount assigned to the inventory on hand on March 31. (Show computations).

Question (d) Increase or decrease in the Gross Profit if you use the LIFO assumption in order to calculate the amount charged to cost of goods sold for March instead of using the FIFO assumption.