Reference no: EM133042130

Question - 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

Mar. 1 Beginning inventory 170 units @ $52.40 per unit

Mar. 5 Purchase 260 units @ $57.40 per unit

Mar. 9 Sales 330 units @ $87.40 per

Mar. 18 Purchase 120 units @ $62.40 per unit

Mar. 25 Purchase 220 units @ $64.40 per unit

Mar. 29 Sales 200 units @ $97.40 per

Totals 770 units 530 units

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.