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nnect- Sign In e https//mewconnect.mheducation.com/flow/connect htm Problem 6-2AA Periodic: Alternative cost flows LO P3 The following information applies to the questions displayed below Warnerwoods Company uses a periodic inventory system. it entered into the following puchases and sailes transactions for March Mar. 1 Beginning Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 188 units $70 per unit 488 units $75 per unit 288 units $88 per unit s8e units s1e5 per unit 368 unitse $82 per unit 328 unitse $115 per unit 828 units Totals 1,380 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 410 units from the March 5 purchase: the March 29 sale consisted of 120 units from the March 18 purchase and 200 units from the March 25 Problem 6-2AA Part 4 4 Compute gross profit eamed by the company for each of the four costing methods. (Reund your places and final answers to neerest whole dollar.) everege cost per unilt to 2 decimal LIFO 103.dool $ ??3000| 893 Cost of goods sold Gross prof pe here to searchExplanation / Answer
Cost of goods sold
1. FIFO
COGS= [ (180 * 70) + (320 * 75)] + [ ( 160 * 75 ) + (160 * 80)]
= 12600 + 24000 + 12000 + 12800
= 61400
2. LIFO
COGS = [(480 * 75) + (20 * 70) ] + [ 320 * 82]
= 63640
3. Weighted average
= [(180*70) + (480 *75) + (280*80) + (360*82) ] / 1300 = 77.32
COGS = 480 * 77.32 = 37114
4. Specific Identification method
COGS = [(90 * 70 ) + (410 * 75) ] + [ (120 * 80) + (200 * 82) ]
= 63050
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