# 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.)
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Warnerwoods Company and Liverpool Company_Invetory Valuation

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### 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 …