Question

Problem 6-2AA Periodic: Alternative cost flows LO P3

[The following information applies to the questionsdisplayed below.]

Warnerwoods Company uses a periodic inventory system. It enteredinto the following purchases and sales transactions forMarch.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginninginventory

200

units

@ $90 per unit

Mar.

5

Purchase

500

units

@ $95 per unit

Mar.

9

Sales

520

units

@ $125 per unit

Mar.

18

Purchase

320

units

@ $100 per unit

Mar.

25

Purchase

400

units

@ $102 per unit

Mar.

29

Sales

360

units

@ $135 per unit

Totals

1,420

units

880

units

For specific identification, the March 9 sale consisted of 70units from beginning inventory and 450 units from the March 5purchase; the March 29 sale consisted of 140 units from the March18 purchase and 220 units from the March 25 purchase.

Required.
Part one. Compute cost of goods available for saleand the number of units available for sale.

Part two. Compute the number of units in endinginventory.

Part three. Compute the cost assigned to endinginventory using (a) FIFO, (b) LIFO, (c)weighted average, and (d) specific identification.(Round your average cost per unit to 2 decimalplaces.)

Part four. Compute gross profit earned by thecompany for each of the four costing methods. (Round youraverage cost per unit to 2 decimal places and final answers tonearest whole dollar.)