Required Information [The following informetion applies to the questions displayed belowj Wermenwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transections for March. Date Activities Units sold at ketail Units Acquired at Cost 100 units e s67.00 per unit 400 units e s72.00 per unit Mar. 1 Beginning inventory Mar. S Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 420 units e s102.00 per unit 120 unitse $7.00 per unit 200 unitse $79.00 per unit 160 unitse s112.00 per unit Totals 820 units s8e units 4. Compute gross profit eamed by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning 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. (Round welghted average cost per unit to two decimals and final answers to nearest whole dollar.)
Required Information [The following informetion applies to the questions displayed belowj Wermenwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transections for March. Date Activities Units sold at ketail Units Acquired at Cost 100 units e s67.00 per unit 400 units e s72.00 per unit Mar. 1 Beginning inventory Mar. S Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 420 units e s102.00 per unit 120 unitse $7.00 per unit 200 unitse $79.00 per unit 160 unitse s112.00 per unit Totals 820 units s8e units 4. Compute gross profit eamed by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning 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. (Round welghted average cost per unit to two decimals and final answers to nearest whole dollar.)
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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