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Warnerwoods Company and Liverpool Company_Invetory Valuation

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Question;Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.DateActivitiesUnits Acquired at CostUnits Sold at RetailMar.1Beginning inventory170units@ $52.40/unitMar.5Purchase260units@ $57.40/unitMar.9Sales330units@$87.40/unitMar.18Purchase120units@ $62.40/unitMar.25Purchase220units@$64.40/unitMar.29Sales200units@$97.40/unitTotals770units530units1.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 UnitItemUnitsCostMarketAudio equipmentReceivers349$104$94CD players264125115MP3 players33010090Speakers2084556Video equipmentHandheld LCDs484129154VCRs2958897Camcorders216326314Car audio equipmentSatellite radios1898874CD/MP3 radios1741091012.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#43433 | Written in 18-Jul-2015

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