Warnerwoods Company and Liverpool Company_Invetory Valuation

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.)