Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactionsfor March.DateActivitiesUnits Acquired at Cost80 units @ $50.60 per unit215 units @ $55.60 per unitUnits Sold at RetailMarch 1March 5March 9March 18Beginning inventoryPurchaseSalesPurchase240 units @ s85.60 per unit75 units @ $60.60 per unit130 units @ $62.60 per unitMarch 25PurchaseMarch 29Sales110 units @ $95.60 per unitTotals500 units350 unitsokProblem 5-1A (Algo) Part 4it4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)ncesWeightedAverageGross MarginFIFOLIFOSpecific IDSalesLess: Cost of goods soldGross profit

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Description: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactionsfor March.DateActivitiesUnits Acquired at Cost80 units @ $50.60 per unit215 units @ $55.60 per unitUnits Sold at RetailMarch 1March

Solution 4: Computation of ending inventory COGS under FIFO - Warnerwoods Co Date Beginning…

Answered: Warnerwoods Company uses a perpetual…

Cornerstones of Financial Accounting

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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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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
for March.
Date
Activities
Units Acquired at Cost
80 units @ $50.60 per unit
215 units @ $55.60 per unit
Units Sold at Retail
March 1
March 5
March 9
March 18
Beginning inventory
Purchase
Sales
Purchase
240 units @ s85.60 per unit
75 units @ $60.60 per unit
130 units @ $62.60 per unit
March 25
Purchase
March 29
Sales
110 units @ $95.60 per unit
Totals
500 units
350 units
ok
Problem 5-1A (Algo) Part 4
it
4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, units sold include 55
units from beginning inventory, 185 units from the March 5 purchase, 35 units from the March 18 purchase, and 75 units from the March
25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
nces
Weighted
Average
Gross Margin
FIFO
LIFO
Specific ID
Sales
Less: Cost of goods sold
Gross profit

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Step 1

Solution 4:

Computation of ending inventory COGS under FIFO - Warnerwoods Co
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
Date	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Mar	80	$50.60	$4,048.00	0	$0.00	$0.00	0	$0.00	$0.00	80	$50.60	$4,048.00
5-Mar	80	$50.60	$4,048.00	215	$55.60	$11,954.00	0	$0.00	$0.00	80	$50.60	$4,048.00
										215	$55.60	$11,954.00
9-Mar	80	$50.60	$4,048.00	0	$0.00	$0.00	80	$50.60	$4,048.00	55	$55.60	$3,058.00
	215	$55.60	$11,954.00				160	$55.60	$8,896.00
18-Mar	55	$55.60	$3,058.00	75	$60.60	$4,545.00	0	$0.00	$0.00	55	$55.60	$3,058.00
										75	$60.60	$4,545.00
25-Mar	55	$55.60	$3,058.00	130	$62.60	$8,138.00	0	$0.00	$0.00	55	$55.60	$3,058.00
	75	$60.60	$4,545.00							75	$60.60	$4,545.00
										130	$62.60	$8,138.00
29-Mar	55	$55.60	$3,058.00	0	$0.00	$0.00	55	$55.60	$3,058.00	20	$60.60	$1,212.00
	75	$60.60	$4,545.00				55	$60.60	$3,333.00	130	$62.60	$8,138.00
	130	$62.60	$8,138.00
Total							350		$19,335.00	150		$9,350.00

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