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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.;Date;Activities;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.)


Paper#37345 | Written in 18-Jul-2015

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