Answer:
See explanation
Explanation:
Requirement A - Specific Identification
<em>Income statement (Partial)</em>
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 = <u> $8,424 </u>
<u> $33,756 </u>
Gross Profit $18,490
Requirement B - FIFO
In each inventory method, sales remain same.
<em>Income statement (Partial)</em>
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
<u>Mar. 18 = 110 units × $62.80 = $ 6,908 </u>
Total cost of goods sold <u> $32,546 </u>
Gross Profit $19,700
Requirement C - LIFO
<em>Income statement (Partial)</em>
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
<u>Mar. 25 = 240 units × $64.80 = $15,552 </u>
Total cost of goods sold <u> $35,276</u>
Gross Profit $16,970
Requirement D - Weighted Average Method
Income statement (Partial)
Sales (350 units×$87.80) + (220 units×$97.80) = $52,246
<u>Less: Cost of goods sold (note - 1) = $ 33,189 </u>
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)
<em>350 units cost of goods sold = 350 × $55.74 = $19,509</em>
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
<em>220 units cost of goods sold = 220 units × $62.18 = $13,680</em>
<em>Total cost of goods sold for 350 + 220 = 570 units = $19,509 + 13,680 = $33,189</em>