Question

Required information [The following information applies to the questions displayed below.) Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Units Sold at Retail Units Acquired at Cost 165 units @ $55 per unit 465 units @ $60 per unit 485 units @ $90 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sa Totals 250 units @ $65 per unit 330 units @ $67 per unit 290 units @ $100 per unit 775 units 1,210 units For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 415 units from the March 5 purchase; the March 29 sale consisted of 105 units from the March 18 purchase and 185 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.) a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available Available for Sale $ 9,075 sold Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory unit 165 $ 55.00 $ 0.00 $ 0 $ 0.00 $ Beginning inventory Purchases: March 5 March 18 March 25 Total $ 60.00 $ 65.00 $ 67.00 $ $ 465 250 330 1,210 0.00 0.00 27,900 16,250 22, 110 $ 75,335 $ $ $ 0.00 0.00 0.00 0 0 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of units Cost per Goods unit Available # of units Cost per sold unit Cost of Goods # of units in ending Cost per unit Ending Inventor

Answer 1

Answers

• 3[a]

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	165	$                55.00	$                        9,075.00	165	$               55.00	$                 9,075.00	0	$                 55.00	$                         -
Purchases:
05-Mar	465	$                60.00	$                      27,900.00	465	$               60.00	$               27,900.00	0	$                 60.00	$                         -
18-Mar	250	$                65.00	$                      16,250.00	145	$               65.00	$                 9,425.00	105	$                 65.00	$            6,825.00
25-Mar	330	$                67.00	$                      22,110.00	0	$               67.00	$                              -	330	$                 67.00	$          22,110.00
TOTAL	1210		$                      75,335.00	775		$               46,400.00	435		$          28,935.00

• 3[b]

LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	165	$                55.00	$                        9,075.00	0	$               55.00	$                              -	165	$                 55.00	$            9,075.00
Purchases:
05-Mar	465	$                60.00	$                      27,900.00	195	$               60.00	$               11,700.00	270	$                 60.00	$          16,200.00
18-Mar	250	$                65.00	$                      16,250.00	250	$               65.00	$               16,250.00	0	$                 65.00	$                         -
25-Mar	330	$                67.00	$                      22,110.00	330	$               67.00	$               22,110.00	0	$                 67.00	$                         -
TOTAL	1210		$                      75,335.00	775		$               50,060.00	435		$          25,275.00

• 3[c]

Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	165	$                55.00	$                        9,075.00
Purchases:
05-Mar	465	$                60.00	$                      27,900.00
18-Mar	250	$                65.00	$                      16,250.00
25-Mar	330	$                67.00	$                      22,110.00
TOTAL	1210	$              62.260	$                      75,335.00	775	$          62.2600	$               48,251.50	435	$            62.2600	$          27,083.10

• 3 [d]

Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	165	$                55.00	$                        9,075.00	70	$               55.00	$                 3,850.00	95	$                 55.00	$            5,225.00
Purchases:
05-Mar	465	$                60.00	$                      27,900.00	415	$               60.00	$               24,900.00	50	$                 60.00	$            3,000.00
18-Mar	250	$                65.00	$                      16,250.00	105	$               65.00	$                 6,825.00	145	$                 65.00	$            9,425.00
25-Mar	330	$                67.00	$                      22,110.00	185	$               67.00	$               12,395.00	145	$                 67.00	$            9,715.00
TOTAL	1210		$                      75,335.00	775		$               47,970.00	435		$          27,365.00