Vinubhai !Required information[The following information applies to the questions displayed below.]Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactiofor March.DateMarch 1March 5ActivitiesBeginning inventoryPurchaseUnits Acquired at CostUnits Sold at Retail100 units400 unitsMarch 9SalesMarch 18PurchaseMarch 25Purchase120 units200 units@ $50 per unit@ $55 per unit@ $60 per unit@ $62 per unit420 units@ $85 per unitMarch 29SalesTotals820 units160 units @ $95 per unit580 units4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold inclunits from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units fromMarch 25 purchase.Note: Round weighted average cost per unit to 2 decimal places.Gross MarginSalesLess: Cost of goods soldGross profitFIFOLIFOWeighted AverageSpecific ID

Name: Vinubhai !Required information[The following information applies to th
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Description: Vinubhai !Required information[The following information applies to the questions displayed below.]Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactiofor March.DateMarch 1March 5Activiti

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Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transacti for March. Date March 1 Units Sold at Retail March 5 Activities Beginning inventory Purchase Units Acquired at Cost 100 units 400 units @ $50 per unit @ $55 per unit March 9 Sales 420 units @ $85 per unit March 18 Purchase March 25 Purchase 120 units 200 units @ $60 per unit @ $62 per unit March 29 Sales Totals 820 units 160 units 580 units @ $95 per unit 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold inc units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from March 25 purchase. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transacti for March. Date March 1 Units Sold at Retail March 5 Activities Beginning inventory Purchase Units Acquired at Cost 100 units 400 units @ $50 per unit @ $55 per unit March 9 Sales 420 units @ $85 per unit March 18 Purchase March 25 Purchase 120 units 200 units @ $60 per unit @ $62 per unit March 29 Sales Totals 820 units 160 units 580 units @ $95 per unit 4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold inc units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from March 25 purchase. Note: Round weighted average cost per unit to 2 decimal places. Gross Margin Sales Less: Cost of goods sold Gross profit FIFO LIFO Weighted Average Specific ID

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the following data available for inventory, purchases, and sales for a recent year. Required: 1. Compute the cost of ending inventory and the cost of goods sold using the specific identification method. Assume the ending inventory is made up of 40 units from beginning inventory, 30 units from Purchase 1, 80 units from Purchase 2, and 40 units from Purchase 3. 2. Compute the cost of ending inventory and cost of goods sold using the FIFO inventory costing method. 3. Compute the cost of ending inventory and cost of goods sold using the LIFO inventory costing method. 4. Compute the cost of ending inventory and cost of goods sold using the average cost inventory costing method. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 5. CONCEPTUAL CONNECTION Compare the ending inventory and cost of goods sold computed under all four methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?
Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
Refer to the information for Morgan Inc. above. If Morgan uses a perpetual inventory system, what is the cost of ending inventory under FIFO at April 30? a. $32,500 b. $38,400 c. $63,600 d. $69,500
Inventory Costing Methods Andersons Department Store has the following data for inventory, purchases, and sales of merchandise for December. Andersons uses a perpetual inventory system. All purchases and sales were for cash. Required: 1. Compute cost of goods sold and the cost of ending inventory using FIFO. 2. Compute cost of goods sold and the cost of ending inventory using LIFO. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. ( Note: Use four decimal places for per-unit calculations.) 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. 5. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes?
FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.
Pappas Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the year, and the inventory count at December 31 are summarized as follows: Instructions 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. Present data in columnar form, using the following headings: If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. 2. Determine the cost of the inventory on December 31 by the last-in, first-out method, following the procedures indicated in (1). 3. Determine the cost of the inventory on December 31 by the weighted average cost method, using the columnar headings indicated in (1). 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.
Uncle Butchs Hunting Supply Shop reports the following information related to inventory: Calculate Uncle Butchs ending inventory using the retail inventory method under the FIFO cost flow assumption. Round the cost-to-retail ratio to 3 decimal places.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
Carla Company uses the perpetual inventory system. The following information is available for January of the current year when Carla sold 1,600 units of inventory on January 14. Using the FIFO method, calculate Carlas cost of goods sold for January and its January 31 inventory.