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.)

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Warnerwoods Company and Liverpool Company_Invetory Valuation

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Preview: of xxxxx available xxx sale and xxx number of xxxxx available xxx xxxx Cost xx goods available xxx Sale# of xxxxxxxxx per xxxxxxxx xx Goods xxxxxxxxx for SaleBeginning xxxxxxxxxxxxxxxxxxx March 5 xxxxx 18 xxxxx xxxxxxxx Compute xxx number of xxxxx in ending xxxxxxxxxxxxxx soldUnits xxxxxxxxx xxx saleNumber xx units in 

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