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 180 units @ $52.60 per unit 265 units @ $57.60 per unit 340 units @ $87.60 per unit Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 125 units @ $62.60 per unit 230 units @ $64.60 per unit 210 units @ $97.60 per unit 550 units 800 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 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase.

Answer 1

Goods Purchsed Units Unit Cost Perpetual FIFO Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 265 57.60 Inventory Balance Units Unit Cost Total Cost | 180 52.60 9468 180 52.60 9468 265 57.60 15264 445 24732 105 57.60 6048 Mar-09 180 160 340 52.60 57.60 9468 9216 18684 Mar-18 125 62.60 57.60 62.60 105 105 125 230 105 125 230 460 6048 6048 7825 13873 6048 Mar-25 230 64.60 57.60 62.60 64.60 7825 Mar-29 20 62.60 64.60 105 57.60 10562.60 210 550 6048 6573 12621 31305 14858 28731 1252 14858 16110 16110 230 250 250 Total

Perpetual LIFO Cost of Goods sold Units Unit Cost Total Cost Goods Purchased Date Units Unit Cost Mar-01 Mar-05 265 57.60 Inventory Balance Units Unit Cost Total Cost 180 52.60 9468 180 52.60 9468 265 57.60 15264 445 24732 105 52.60 5523 T L Mar-09 1 265 75 340 57.60 52.60 15264 3945 19209 Mar-18 125 62.60 52.60 62.60 Mar-25 230 64.60 105 105 125 230 105 125 230 460 105 125 20 250 250 52.60 62.60 64.60 | 5523 5523 7825 13348 5523 7825 14858 28206 5523 7825 1292 146401 14640 Mar-29 210 64.60 13566 52.60 62.60 64.60 210 550 13566 32775 Total

Date Mar-01 Mar-05 Mar-09 Mar-18 Weighted Average Inventory Cost method Goods Purchsed Cost of Goods sold Inventory Balance Units Unit Cost Units Unit Cost Total Cost Units Unit Cost Total Cost 180 52.60 9468 265 57.60 180 52.60 9468 265 57.60 15264 445 55.58 24732 340 55.58 18896 105 55.58 5836 125 62.60 105 55.58 5836 125 62.60 7825 230 59.39 13661 230 64.60 105 55.58 5836 125 62.60 7825 230 64.60 14858 460 62.00 28519 210 62.00 | 13019 250 62.00 15499 620 550 31916 250 15499 Mar-25 Mar-29 Total

Goods Purchsed Units Unit Cost Specific Identification method Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 265 57.60 445 Mar-09 .60 5523 105 235 340 52.60 57.60 13536 19059 Mar-18 125 62.60 Inventory Balance Units Unit Cost Total Cost | 180 52.60 9468 180 52.60 9468 265 57.60 15264 24732 75 52.60 3945 30 57.60 1728 5673 52.60 3945 57.60 1728 62.60 7825 13498 52.60 3945 57.60 1728 125 62.60 7825 64.60 14858 430 28356 52.60 3945 30 57.60 1728 40 62.60 2504 105 | 64.60 6783 250 14960 250 14960 Mar-25 230 64.60 30 230 Mar-29 85 125 62.60 64.60 5321 8075 210 550 13396 32455 Total