Evaluate cost of goods available for sale

Assignment Help Financial Accounting
Reference no: EM13329068

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
100 units @ $51.00/unit




Mar. 5
Purchase
225 units @ $56.00/unit




Mar. 9
Sales




260 units @ $86.00/unit

Mar. 18
Purchase
85 units @ $61.00/unit




Mar. 25
Purchase
150 units @ $63.00/unit




Mar. 29
Sales




130 units @ $96.00/unit

















Totals
560 units

390 units
















Required:

1. Compute cost of goods available for sale and the number of units available for sale.

2. Compute the number of units in ending inventory.

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 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 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 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase. (Round average cost per unit to 2 decimal places.)

Reference no: EM13329068

Questions Cloud

Where does the ball land relative to the cannon : A 1.00 Kg ball is shot out of a cannon inclined at 40 degrees, by a spring initially compressed by 0.500 m. Where does the ball land relative to the cannon
Explain how many jules of energy are needed to change : How many jules of energy are needed to change 275 g of water from 15 degrees celcius to steam at 50 degrees celcius
What are expected return & the standard deviation of return : (a) What are the expected return & the standard deviation of return on Harry's portfolio (b) Recalculate the expected return & the standard deviation where the correlation between the returns is 0 and 1.0, respectively.
What is the radius of its trajectory in the bubble chamber : The positron is a particle with the same mass as an electron but charge +e. what's the radius of its trajectory in the bubble chamber
Evaluate cost of goods available for sale : Compute cost of goods available for sale and the number of units available for sale and compute the number of units in ending inventory.
Find out the resulting nitrate ion concentration : Detarmine the resulting Nitrate ion concentration when 95 ml of 0.592m potassium nitrate and 145.5ml of 1.770m calcium nitrate are combined
Identify and explain two factors that would increase : Many factors determine the supply and demand for labor. Identify and explain two factors that would increase or demand for lavo. Identify and explain two factors that would increase or decrease the supply of labor.
Calculate the eac for new delivery service : You have two choices: the Scion xA, which will cost $22,500 to purchase and which will have OCF of -$2,900 annually throughout the vehicle's expected life of three years as a delivery vehicle; and the Toyota Prius,
Explain the na concentration in 3.25m soduim sulfate : What is the Na concentration in 3.25M Soduim Sulfate, 1.5M Sodium Carbonate, 0.885 Sodium Bicarbonate

Reviews

Write a Review

Financial Accounting Questions & Answers

  Overhead allocation plant wide rate

Overhead allocation plant wide rate direct labor hours Machine hour basis - Top management complains that if the accountants had been more accurate in estimating overhead then they wouldn't have over applied overhead. Is this true? Explain.

  Compute the unit product cost under cost absorption costing

Compute the unit product cost under cost absorption costing and redo the company's income statement for the month using absorption costing.

  Determine the irr of the project

Calculation of Arithmetic ,Geometric Mean and NPV and determine the IRR of the project? (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)

  Which of the following is not a benefit of budgeting

Which of the following isn't a benefit of budgeting? It promotes efficiency It deters waste It is a base for performance evaluation

  What it the totla amount of fica tax

Edward worked at three jobs during 2011. he earned 40,000, 37,000 and 9,000 respectively from the jobs and claimed three allowances on each of his W-4's. What it the totla amount of FICA tax that would have been withheld for Edwards wages?

  Will this profitability last

What would you recommend that the monopolist do to maximize profits? b.) Why might a business owner keep their business open but let it deteriorate, rather than shut it down? Will this profitability last?

  Evaluate emma''s basis in her partnership interest

How much gain, if any, must Emma identify on the transfer? Must Laine recognize any gain and evaluate Emma's basis in her partnership interest?

  Determine the amount of retained earnings

Determine the amount of retained earnings as of 12-31-2013 and create an accounting equation and record the beginning account balances under the appropriate elements.

  What was balance in eve prepaid insurance

The liability policy was $63,000 for eighteen-months, and the crop damage policy was $24,000 for a two-year term. What was the balance in Eve's prepaid insurance as of December 31, 2012?

  Calculate the npv for the purchase lease without service

Trasky’s cost of capital is 14%. The tax rate is 40%. The service contract’s cost would be expensed over the 10 year period. Assume this is an operating lease. Calculate the NPV for the purchase, lease without the service contract, and lease with t..

  Evaluate the amount of materials handling overhead cost

Evaluates the amount of materials handling overhead cost that should be allocated to the company's two products.

  Compute the federal tax return for the deckers

Paul and Donna Decker are married taxpayers, ages 44 and 42, who file a joint return for 2013. The Deckers live at 1121 College Avenue, Moab, Utah 84632. Paul is an assistant manager at Moab Motor Inn, and Donna is a teacher at Carmel Elementary S..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd