Part 3: The Warnerwood Company
The Warnerwood Company uses a perpetual inventory system. Itentered the following purchases and sales transactions for Marchinto the system:
Date
Activities
Units Acquired at Cost
Cost per Unit
Units Sold at Retail
Price per unit
March 1
Beginning inventory
100 units
$50
March 5
Purchase
400 units
$55
March 9
Sales
420
$85
March 18
Purchase
120 units
$60
March 25
Purchase
200 units
$62
March 29
Sales
160 units
$95
Totals
820 units
580 units
Instructions:
Show all of your work in an Excel spreadsheet for the followingtasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO,(b) LIFO, and (c) weighted average. (Round the average cost perunit to 2 decimal places.)
Compute the gross profit earned by the company for each of thethree costing methods. (Round the average cost per unit to 2decimal places.)
Part 3: The Warnerwood Company
The Warnerwood Company uses a perpetual inventory system. Itentered the following purchases and sales transactions for Marchinto the system:
Date | Activities | Units Acquired at Cost | Cost per Unit | Units Sold at Retail | Price per unit |
---|---|---|---|---|---|
March 1 | Beginning inventory | 100 units | $50 | ||
March 5 | Purchase | 400 units | $55 | ||
March 9 | Sales | 420 | $85 | ||
March 18 | Purchase | 120 units | $60 | ||
March 25 | Purchase | 200 units | $62 | ||
March 29 | Sales |
| 160 units | $95 | |
Totals | 820 units | 580 units |
Instructions:
Show all of your work in an Excel spreadsheet for the followingtasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO,(b) LIFO, and (c) weighted average. (Round the average cost perunit to 2 decimal places.)
Compute the gross profit earned by the company for each of thethree costing methods. (Round the average cost per unit to 2decimal places.)