erwoods Comp Warnerwoodsoo mnpalinventory system.It entered into the following p

Question

erwoods Comp Warnerwoodsoo mnpalinventory system.It entered into the following purchases and cales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from be- siming 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.) Date Activities Units Acquired at Cost Units Sold at Retail 100 units@ $50.00 per unit Mar. 9 Sales 420 units @ $85.00 per unit 160 units $95.00 per unit 580 units Mar. 29 Sales Required 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 ompute tie cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) ompute gross profit earned by the company for each of the four costing methods in part3. 4. C

Explanation / Answer

Answer - 1 , 2 And 3   workings given below FIFO cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 50 5000 Mar-05 Purchase 400 55 22000 Mar-09 Sales 100 50 5000 320 55 17600 Balance 80 55 4400 Mar-18 Purchase 120 60 7200 Mar-25 Purchase 200 62 12400 Mar-29 Sales 80 55 4400 80 60 4800 40 60 2400 200 62 12400 Balance 240 14800 820 46600 580 31800 LIFO cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 50 5000 Mar-05 Purchase 400 55 22000 Mar-09 Sales 20 50 1000 400 55 22000 Balance 80 50 4000 Mar-18 Purchase 120 60 7200 Mar-25 Purchase 200 62 12400 Mar-29 Sales 160 62 9920 80 50 4000 120 60 7200 40 62 2480 Balance 240 13680 820 46600 580 32920 Average cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 50 5000 Mar-05 Purchase 400 55 22000 Balance 500 54 27000 Mar-09 Sales 420 54 22680 Balance 80 54 4320 Mar-18 Purchase 120 60 7200 Balance 200 57.6 11520 Mar-25 Purchase 200 62 12400 Balance 400 59.8 23920 Mar-29 Sales 160 59.8 9568 Balance 240 59.8 14352 820 46600 580 32248 Specific identification cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 100 50 5000 Mar-05 Purchase 400 55 22000 80 50 4000 340 55 18700 Balance 20 50 1000 60 55 3300 Mar-18 Purchase 120 60 7200 Mar-25 Purchase 200 62 12400 Mar-29 Sales 40 60 2400 120 62 7440 20 50 1000 60 55 3300 80 60 4800 80 62 4960 240 14060 Balance 820 46600 580 32540 Answer 4 -Gross profit (sales -cost of goods sold) Sales 420 *85 35700 160 * 95 15200 Total 50900 Cost of goods sold : Gross profit FIFO 31800 19100 LIFO 32920 17980 Weighted average 32248 18652 Specific identification method 32540 18360

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