Question

Chapter 05 Homework i Saved Required information [The following information applies to the questions displayed below.] Part 1 of 4 Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March points Units Sold at Retail Units Acquired at Cost 145 units @ $80 per unit 445 units@ $85 per unit 465 units @ $115 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals eBook 210 units@ $90 per unit 290 units @ $92 per unit 250 units @ $125 per unit 715 units 1,090 units Print For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 375 units from the March 5 purchase, the March 29 sale consisted of 85 units from the March 18 purchase and 165 units from the March 25 purchase. References 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 cost of Goods Available Unit for Sale Beginning inventory Purchases: March 5 March 18 March 25 Total
Please Help it is a 4 part question and i am lost on it.

Answer 1

1. Cost of goods available for sale

	Units	cost per unit	cost of goods available for sale
Beginning inventory	145	80	11,600
Purchases
March 5	445	85	37,825
March 18	210	90	18,900
March 25	290	92	26,680
Total	1,090		95,005

2. Calculation of no. of units in ending inventory

Ending inventory= beginning inventory+ purchases - sales

= 145+945-715

=375 units

3.

A. Periodic FIFO

Periodic FIFO.

Cost of goods available For sale.

Cost of goods Sold

Ending inventory.

	units	cost per unit	cost of goods available for sale	units sold	cost per unit	cost of goods sold	units in ending inventory	cost per unit	Ending inventory
Beginning inventory	145	80	11,600				145	80	11,600
March 5	445	85	37,825				145 445	80 85	11,600 37,825
March 9				145 320	80 85	11,600 27,200	125	85	10,625
March 18	210	90	18,900				125 210	85 90	10,625 18,900
March 25	290	92	26,680				125 210 290	85 90 92	10,625 18,900 26,680
March 29				125 125	85 90	10,625 11,250	85 290	90 92	7,650 26,680
	1090		95,005	715		60,675	375		34,330

B. Periodic LIFO

	Units	cost per unit	cost of goods available for sale	units sold	cost per unit	Cost of goods sold	units in ending inventory	cost per unit	Ending inventory
Beginning inventory	145	80	11,600				145	80	11,600
March 5	445	85	37,825				145 445	80 85	11,600 37,825
March 9				445 20	85 80	37,825 1,600	125	80	10,000
March 18	210	90	18,900				125 210	80 90	10,000 18,900
March 25	290	92	26,680				125 210 290	80 90 92	10,000 18,900 26,680
March 29				250	92	23,000	125 210 40	80 90 92	10,000 18,900 3,680
Total	1,090		95,005	715		62,425	375		32,580

C. Weighted average method

	Units	cost per unit	cost of goods available for sale	units sold	cost per unit	Cost of goods sold	units in ending inventory	cost per unit	ending inventory
Beginning inventory	145	80	11,600				145	80	11,600
March 5	445	85	37,825				590	83.77	49,425
March 9				465	83.77	38,954	125	83.77	10,471
March 18	210	90	18,900				335	87.67	29,371
March 25	290	92	26,680				625	89.68	56,051
March 29				250	89.68	22,420	375	89.68	33,631
Total	1,090		95,005	715		61,374	375		33,631

D. Specific identification method

	Units	cost per unit	cost of goods available for sale	units sold	Cost per unit	cost of goods sold	Units in ending inventory	cost per unit	Ending inventory
Beginning inventory	145	80	11,600				145	80	11,600
March 5	445	85	37,825				145 445	80 85	4,400 37,825
March 9				90 375	80 85	7,200 31,875	55 70	80 85	4,400 5,950
March 18	210	90	18,900				55 70 210	80 85 90	4,400 5,950 18,900
March 25	290	92	26,680				55 70 210 290	80 85 90 92	4,400 5,950 18,900 26,680
March 29				85 165	90 92	7,650 15,180	55 70 125 125	80 85 90 92	4,400 5,950 11,250 11,500
Total	1,090		95,005	715		61,905	375		33,100

4. Computation of gross profit earned under each of costing methods

	FIFO	LIFO	Weighted average	Specific identification
Sales( 465×115 + 250×125)	84,725	84,725	84,725	84,725
Less: cost of goods sold	(60,675)	(62,425)	(61374)	(61,905)
Gross profit	24,050	22,300	23,351	22,820

____×____

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