Question

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase. (Round weighted average cost per unit to two decimals.)

Answer 1

Answer:

Profit is computed as below.

Explanation:

Particulars                 FIFO LIFO Avg cost Spec. ID

Sales                               50900 50900 50900 50900

Cost of goods sold 31800 32920 32248 32540

Gross Profit                  19100 17980 18652 18360