Question

Required information [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. Units Sold at Retail Units Acquired at Cost 230 units @ $53.60 per unit 290 units @ $58.60 per unit 390 units @ $88.60 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 150 units @ $63.60 per unit 280 units @ $65.60 per unit 260 units @ $98.60 per unit 650 units 950 units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 130 units from beginning inventory and 260 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 150 units from the March 25 purchase.

Answer 1

Perpetual FIFO Cost of Goods sold Units Unit Cost Total Cost Goods Purchsed Units Unit Cost Inventory Balance Date Mar-01 Mar-05 290 58.60 23053.60 230 53.60 290 58.60 520 130 58.60 12328 12328 16994 293221 7618 Mar-09 230 160 390 53.60 58.60 12328 9376 21704 130 Mar-18 150 63.60 130 150 280 58.60 63.60 Mar-25280 65.60 130 58.60 63.60 65.60 7618 7618 9540 17158) 7618 9540 18368 35526 1272 18368 19640 19640 Mar-29 58.60 63.60 150 280 560 20 280 300 300 130 130 260 650 63.60 65.60 7618 8268 15886 37590 Total

Perpetual LIFO Cost of Goods sold Units Unit Cost Total Cost Goods Purchased Date Units Unit Cost Mar-01 Mar-05 290 58.60 Inventory Balance Units Unit Cost Total Cost 230 53.60 12328 230 53.60 12328 290 58.60 16994 520 29322 130 53.60 6968 Mar-09 58.60 53.60 100 390 16994 5360 22354 Mar-18 150 6 3.60 53.60 63.60 Mar-25280 65.60 130 130 150 280 130 150 280 560 130 150 20 300 300 53.60 63.60 65.60 6968 6968 9540 16508 6968 9540 18368 34876 6968 9540 1312 17820 17820 Mar-29 260 65.60 17056 53.60 63.60 65.60 260 650 17056 39410 Total

56.39 Weighted Average Inventory Cost method Goods Purchsed Cost of Goods sold Inventory Balance Date Units Unit Cost Units Unit Cost Total Cost Units Unit Cost Total Cost Mar-01 230 53.60 12328 Mar-05 290 58.60 230 53.60 12328 290 58.60 16994 520 29322 Mar-09 390 56.39 21992 130 56.39 7331 Mar-18 150 6 3.60 130 56.39 7331 150 63.60 9540 280 60.25 16871 Mar-25280 65.60 130 56.39 7331 150 63.60 9540 18368 560 62.93 35239 Mar-29 | 260 62.93 16361 300 62.93 18878 Total 720 650 38352 300 18878 280I 65.60

Goods Purchsed Units Unit Cost Specific Identification method Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 290 58.60 Mar-09 13053.60 260 58.60 390 6968 15236 22204 7118 Mar-18 150 63.60 1758 Inventory Balance Units Unit Cost Total Cost | 230 53.60 12328 53.60 12328 290 58.60 16994 520 29322 100 53.60 5360 30 58.60 1758 130 100 53.60 5360 30 58.60 150 63.60 95401 280 16658 100 53.60 58.60 1758 150 63.60 9540 65.60 18368 530 35026 100 53.60 5360 30 58.60 1758) 63.60 2544 130 65.60 8528 300 18190 300 18190 Mar-25 280 65.60 | 5360 30 280 Mar-29 110 150 63.60 65.60 6996 9840 40 260 650 16836 39040 Total