Anthony 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 |
@ $97.40/unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals |
|
770 |
units |
|
|
530 |
units |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Required: |
| 1. |
Compute cost of goods available for sale and the number of units available for sale.
|
| 2. |
Compute the number of units in ending inventory. |
| 3. |
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase. (Due to rounding, the sum of Cost of Goods Sold and Ending inventory may not equal the Cost of Good available for sales. Round your per unit costs to 3 decimal places and inventory balances to the nearest dollar amount. Omit the "$" sign in your response.)
|
| |
|
Ending
Inventory |
| (a) |
FIFO |
$ |
| (b) |
LIFO |
$ |
| (c) |
Weighted average |
$ |
| (d) |
Specific identification |
$ |
|
| 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 per unit costs to 3 decimal places and inventory balances and final answer to the nearest dollar amount. Omit the "$" sign in your response.)
|