Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 110 units from beginning inventory and 240 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 130 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

See explanation

Explanation:

Requirement A - Specific Identification

Income statement (Partial)

Sales (350 units×$87.80) + (220 units×$97.80) = $52,246

Less: Cost of goods sold

Beginning (Mar. 1) = 110 units × $52.80 = $5,808

Mar. 5 = 240 units × $57.80 =                  $13,872

Mar. 18 = 90 units × $62.80 =                   $5,652

Mar. 25 = 130 units × $64.80 =                $8,424                    

                                                                                $33,756    

Gross Profit                                                             $18,490

Requirement B - FIFO

In each inventory method, sales remain same.

Income statement (Partial)

Sales (350 units×$87.80) + (220 units×$97.80) = $52,246

Less: Cost of goods sold

Beginning (Mar. 1) = 190 units × $52.80 = $10,032

Mar. 5 = 270 units × $57.80                    = $15,606

Mar. 18 = 110 units × $62.80                    = $ 6,908                

Total cost of goods sold                                         $32,546  

Gross Profit                                                             $19,700

Requirement C - LIFO

Income statement (Partial)

Sales (350 units×$87.80) + (220 units×$97.80) = $52,246

Less: Cost of goods sold

Mar. 5 = 200 units × $57.80           = $ 11,560

Mar. 18 = 130 units × $62.80           = $  8,164

Mar. 25 = 240 units × $64.80         = $15,552                        

Total cost of goods sold                                        $35,276

Gross Profit                                                            $16,970

Requirement D - Weighted Average Method

Income statement (Partial)

Sales (350 units×$87.80) + (220 units×$97.80) = $52,246

Less: Cost of goods sold (note - 1)                      = $ 33,189  

Gross Profit                                                           = $19,057

Note - 1

For first 350 units cost of goods sold

Total units(beginning + March 5) = 190 units + 270 units = 460 units

Total cost = $10,032 + $15,606 = $25,638

Weighted average cost per unit = Total cost ÷ Total units

Weighted average cost per unit = $25,638 ÷ 460 units = $55.74 (Rounded to two decimal places)

350 units cost of goods sold = 350 × $55.74 = $19,509

For the second 220 units cost of goods sold

Remaining balance after 350 sold = 460 units - 350 units = 110 units

And cost = $25,638 - $19,509 = $6,129

Mar. 18 = Total units = 110 + 130 = 240 units

Total costs = $6,129 + $8,164 = $14,293

Weighted average cost = $14,293 ÷ 240 untis = $59.55

Mar. 25 = Total units = 240 + 240 = 480 units

Total costs = $14,293 + $15,552 = $29,845

Weighted average cost = $29,845 ÷ 480 units = $62.18

220 units cost of goods sold = 220 units × $62.18 = $13,680

Total cost of goods sold for 350 + 220 = 570 units = $19,509 + 13,680 = $33,189

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know