Required information
Problem 6-2AA (Static) Periodic: Alternative cost flows LO P3
[The following information applies to the questions displayed below.]
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions
for March.
Date Activities Units Acquired at Cost Units Sold at Retail
March 1 Beginning inventory 100 units @ $50 per unit
March 5 Purchase 400 units @ $55 per unit
March 9 Sales 420 units @ $85 per unit
March 18 Purchase 120 units @ $60 per unit
March 25 Purchase 200 units @ $62 per unit
March 29 Sales 160 units @ $95 per unit
Totals 820 units 580 units
For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40
units from the March 18 purchase, and 120 units from the March 25 purchase.
Problem 6-2AA (Static) Part 4
4. Compute gross profit earned by the company for each of the four costing methods.
Note: Round your average cost per unit to 2 decimal places and final answers to nearest whole dollar.
FIFO LIFO Weighted Average Specific Identification
Sales $ 50,900 $ 50,900 $ 50,900 $ 50,900
Less: Cost of goods sold
Gross profit $ 50,900 $ 50,900 $ 50,900 $ 50,900
