Warnerwoods Company and Liverpool Company_Invetory Valuation

Warnerwoods Company and Liverpool Company_Invetory Valuation

Question
	
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.










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Units Acquired at Cost
Units Sold at Retail
Mar.
1
Beginning inventory
170
units
@ $52.40/unit
Mar.
5
Purchase
260
units
@ $57.40/unit
Mar.
9
Sales
330
units
@$87.40/unit
Mar.
18
Purchase
120
units
@ $62.40/unit
Mar.
25
Purchase
220
units
@$64.40/unit
Mar.
29
Sales
200
units
@$97.40/unit
Totals
770
units
530
units
1.
Required:
1.
Compute cost of goods available for sale and the number of units available for sale.
3.
Compute the cost assigned to ending inventory using(a)FIFO,(b)LIFO,(c)weighted average, and(d)specific identification. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your average cost per unit to 2 decimal places.)
4.
Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your final answers to two decimal places.)
A physical inventory of Liverpool Company taken at December 31 reveals the following.
Per Unit
Item
Units
Cost
Market
Audio equipment
Receivers
349
$
104
$
94
CD players
264
125
115
MP3 players
330
100
90
Speakers
208
45
56
Video equipment
Handheld LCDs
484
129
154
VCRs
295
88
97
Camcorders
216
326
314
Car audio equipment
Satellite radios
189
88
74
CD/MP3 radios
174
109
101
2.
If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.(If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)