# Compute the gross margin for lifo method lifo sales

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Compute the gross margin for LIFO method. 15,175 Worksheet Learning Objective: 05-P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average. Compute the gross margin for FIFO method. FIFO: Sales revenue 26,691 Less: Cost of goods sold 10,866 Gross margin 15,825
Compute the gross margin for LIFO method. \$ \$ LIFO: Sales revenue 26,691 Less : Cost of goods sold 11,516 Gross margin 15,175 Explanation: FIFO Gross margin Sales revenue (615 units sold × \$43.40 selling price) = \$26,691 LIFO Gross margin Sales revenue (615 units sold × \$43.40 selling price) = \$26,691
Score: 7 out of 7 points (100%) 6. award: 0.70 out of 0.70 points You received credit for this question in a previous attempt [The following information applies to the questions displayed below.] 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 100 units @ \$51.00/unit Mar. 5 Purchase 225 units @ \$56.00/unit Mar. 9 Sales 260 units @ \$86.00/unit Mar. 18 Purchase 85 units @ \$61.00/unit Mar. 25 Purchase 150 units @ \$63.00/unit Mar. 29 Sales 130 units @ \$96.00/unit Totals 560 units 390 units rev: 03_20_2013_QC_27089, 04_17_2013_QC_29162, 11_25_2013_QC_41127 Required: 1. Compute cost of goods available for sale and the number of units available for sale. \$ \$ \$ Cost of Goods Available for Sale # of units Cost per unit Cost of Goods Available for Sale Beginning Inventory 100 51.00 5,100 Purchases: March 5 225 56.00 12,600 March 18 85 61.00 5,185 March 25 150 63.00 9,450 Total 560 32,335 Expanded table Learning Objective: 05-P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average. Required: 1. Compute cost of goods available for sale and the number of units available for sale.
7. award: 0.70 out of 0.70 points You received credit for this question in a previous attempt 2. Compute the number of units in ending inventory.
8. award: 0.70 out of 0.70 points You received credit for this question in a previous attempt Worksheet Learning Objective: 05-P1 Compute inventory in a perpetual system using the methods of specific identification, FIFO, LIFO, and weighted average.