Compute gross profit earned by the company

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Problem 5-1A (Static) Periodic: Alternative cost flows LO P1Skip to question

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

DateActivitiesUnits Acquired at CostUnits Sold at Retail Mar.1 Beginning inventory 100units@ $50 per unit Mar.5 Purchase 400units@ $55 per unit Mar.9 Sales 420units@ $85 per unit Mar.18 Purchase 120units@ $60 per unit Mar.25 Purchase 200units@ $62 per unit Mar.29 Sales 160units@ $95 per unit Totals 820units 580units

For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Problem 5-1A (Static) Part 4

4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.)

Reference no: EM132985874

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