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 Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 125 unitse $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 sole 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

Perpetual FIFO Goods Purchased # no of Cost Per Date Units unit Mar-01 Mar-05 265 @ $ 57.60 # of Units Sold Cost of Goods Sold Cost per Cost of Goods Sold Unit Inventory Balance #of Cost per Inventory Units Unit balance 180 @ $ 52.60 = $ 9,468.00 180 @ $ 52.60 = $ 9,468.00 265 @ $ 57.60 = $ 15,264.00 Old Stock of 180 units sold first 105 @ $ 57.60 $ 6,048.00 INew Stock of 160 from 265 sold later to old stock Mar-09 180 @ 160 @ 340 $ 52.60 = $ 57.60 = $ $ A $ 9,468.00 9,216.00 18,684.00 Mar-18 125 @ $ 62.60 Mar-25 230@S 64.60 105 @ $ 125 @ $ 105 @ $ 125 @ $ 230 @ $ 57.60 = $ 6,048.00 62.60 = $ 7,825.00 57.60 = $ 6,048.00 62.60 = $ 7,825.00 64.60 = $ 14,858.00 Mar-29 105 @ 105 @ $ 57.60 = $ 6,048.00 $ 62.60 = $ 6,573.00 B$ 12,621,00 A+B $ 31,305.00 20 @ $ 230@ $ 2100 Old Stock of 105units sold first 1 Next ald Stock of 105 units from 125 units sold later 2 62.60 = $ 1,252.00 64.60 = $ 14,858.00 $ 16,110.00 Total =1+2 Perpetual LIFO Goods Purchased # no of Cost Per Date Units unit Mar-01 @ Mar-05 265 @ $ 57.60 # of Units Sold Cost of Goods Sold Cost per Cost of Goods Unit Sold Inventory Balance # of Cost per Inventory Units Unit balance 180 @ $ 52.60 = $ 9,468.00 180 @ $ 52.60 = $ 9,468.00 265 @ $ 57.60 = $ 15,264.00 New Stock of 265 units sold first 105 @ $ 52.60 = $ 5,523.00 Remaining Sales of 75 units to make sales of 340 was made from old stock of 180 Mar-09 265 @ 75 @ 340 $ 57.60 = $ 57.60 $ 15,264.00 $ 4,320.00 A $ 19,584.00 Mar-18 125 @ $ 62.60 Mar-25 230 @ $ 64.60 105 @ $ 125 @ $ 105 @ $ 125 @ $ 230@ S 105 $ 125 @ $ 20@ $ 52.60 = $ 62.60 = $ 52.60 $ 62.60 = $ 64.60 = $ 52.60 = $ 62.60 = $ 64.60 = $ $ 5,523.00 7,825.00 5,523.00 7,825.00 14,858.00 5,523.00 7,825.00 1,292.00 9,117.00 Mar-29 210@ S 64.60 = BS 13,566.00 A+B $ 33,150.00 3 Sales were made from newest stock of 230 units =1+2+3 Total

Average Cost Goods Purchased # no of Cost Per Date Units unit Mar-01 Mar-05 265 @ $ 57.60 # of Units Sold Cost of Goods Sold Cost of Goods Unit Sold l@ @ 340 @ $ 55.58 = $ 18,897.20 Mar-091 Mar-18 125 @ Inventory Balance # of Cost per Inventory Units Unit 1 balance 180 @ $ 52.60 = $ 9,468.00 180 @ $ 52.60 = $ 9,468.00 265 @ $ 57.60 = $ 15,264.00 445 @ $ 55.58 = $ 24,732.00 Average Cost = Total Cost/Total Units 105 $ 55.58 = $ 5,835.90 105 @ $ 55.58 = $ 5,835.90 125 @ $ 62.60 = $ 7,825.00 335 $ 58.20 $ 19,496.80 335 @ $ 58.20 = $ 19,497.00 230 @ $ 64.60 = $ 14,858.00 565 @ $ 60.81 = $ 34,355.00 3 55 @ $ 60.81 = $ 21,587.55 $ 62.60 Mar-25 230 @ $ 230 ml 64.60 Mar-29 Total 1111 210 @ $ 60.81 = 11 $ 12,770.10 $ 31,667.30 Specific Identification Goods Purchased #no of Cost Per Date Units unit Mar-01 @ Mar-05 265 @ $ 57.60 | Cost of Goods Sold Cost per Cost of Goods Unit Sold # of Units Sold Inventory Balance # of Cost per Inventory Units Unit balance 180 @ $ 52.60 = $ 9,468.00 180 @ $ 52.60 = $ 9,468.00 265 @ $ 57.60 1 = $ 15,264.00 75 @ $ 52.60 = $ 3,945.00 30 @ $ 57.60 = $ 1,728.00 Mar-09 105 @ 235 @ 3401 $ 52.60 = $ 57.60 = A $ 5,523.00 $ 13,536.00 $ 19,059.00 Mar-18 125 @ $ 62.60 Mar-25 230 @ $ 64.60 75 @ $ 30 @ $ 125 @ $ 75 @ $ 30 @ $ 125 @ $ 230 @ $ 52.60 1 = $ 3,945.00 57.60 | = $ 1,728.00 62.60 = $ 7,825.00 52.60 = $ 3,945.00 57.60 | = $ 1,728.00 62.60 = $ 7,825.00 64.60 = $ 14,858.00 52.60 $ 3,945.00 57.60 | = $ 1,728.00 62.60 | = $ 2,504.00 64.60 = $ 6,783.00 Mar-29 30 @ $ 40 @ $ 105 @ $ Nm 85 @ $ 62.60 = 125 @ $ 64.60 = 210 B A+B $ 5,321.00 $ 8,075.00 $ 13,396.00 $ 32,455.00 Total $ 14,960.00 =1+2+3+4

SOLUTION TO 6 Computatuin of Groiss Margin Earned by the Company Particulars FIFO LIFO Sales Less: Cost Of Goods Sold Gross Profit A B A-B $ 50,280.00 $ 50,280.00 $ 31,305.00 $ 33,150.00 $ 18,975.00 $ 17,130.00 Average Cost | $ 50,280.00 $ $ 31,667.30 $ $ 18,612.70 $ Specific Identification 50,280.00 32,455.00 From Solution to 5 17,825.00 Sales Date Units Selling Price Sales Value Mar-09 340) $ 87.60 $ 29,784.00 Mar-29 210 $ 97.60 $ 20,496.00 TOTAL SALES = $ 50,280.00 The Value Sale is same All forms of Inventory Systems as The same was Done at predetermined Rates By Management