Question

 Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 

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 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase.

Answer 1

Solution 3:

Computation of ending inventory COGS under FIFO - Warnerwoods Co
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Mar	150	$52.00	$7,800.00	0	$0.00	$0.00	0	$0.00	$0.00	150	$52.00	$7,800.00
5-Mar	150	$52.00	$7,800.00	250	$57.00	$14,250.00	0	$0.00	$0.00	150	$52.00	$7,800.00
										250	$57.00	$14,250.00
9-Mar	150	$52.00	$7,800.00	0	$0.00	$0.00	150	$52.00	$7,800.00	90	$57.00	$5,130.00
	250	$57.00	$14,250.00				160	$57.00	$9,120.00
18-Mar	90	$57.00	$5,130.00	110	$62.00	$6,820.00	0	$0.00	$0.00	90	$57.00	$5,130.00
										110	$62.00	$6,820.00
25-Mar	90	$57.00	$5,130.00	200	$64.00	$12,800.00	0	$0.00	$0.00	90	$57.00	$5,130.00
	110	$62.00	$6,820.00							110	$62.00	$6,820.00
										200	$64.00	$12,800.00
29-Mar	90	$57.00	$5,130.00	0	$0.00	$0.00	90	$57.00	$5,130.00	20	$62.00	$1,240.00
	110	$62.00	$6,820.00				90	$62.00	$5,580.00	200	$64.00	$12,800.00
	200	$64.00	$12,800.00
Total							490		$27,630.00	220		$14,040.00

Computation of ending inventory COGS under LIFO - Warnerwoods Co
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Mar	150	$52.00	$7,800.00	0	$0.00	$0.00	0	$0.00	$0.00	150	$52.00	$7,800.00
5-Mar	150	$52.00	$7,800.00	250	$57.00	$14,250.00	0	$0.00	$0.00	150	$52.00	$7,800.00
										250	$57.00	$14,250.00
9-Mar	150	$52.00	$7,800.00	0	$0.00	$0.00	250	$57.00	$14,250.00	90	$52.00	$4,680.00
	250	$57.00	$14,250.00				60	$52.00	$3,120.00
18-Mar	90	$52.00	$4,680.00	110	$62.00	$6,820.00	0	$0.00	$0.00	90	$52.00	$4,680.00
										110	$62.00	$6,820.00
25-Mar	90	$52.00	$4,680.00	200	$64.00	$12,800.00	0	$0.00	$0.00	90	$52.00	$4,680.00
	110	$62.00	$6,820.00							110	$62.00	$6,820.00
										200	$64.00	$12,800.00
29-Mar	90	$52.00	$4,680.00	0	$0.00	$0.00	180	$64.00	$11,520.00	90	$52.00	$4,680.00
	110	$62.00	$6,820.00							110	$62.00	$6,820.00
	200	$64.00	$12,800.00							20	$64.00	$1,280.00
Total							490		$28,890.00	220		$12,780.00

Computation of ending inventory COGS under Weighted Average Cost - Warnerwoods Company
Date	Beginning Inventory			Purchase			Cost of Goods Sold			Ending Inventory
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
1-Mar	150	$52.00	$7,800	0	$0.00	$0	0	$0.00	$0	150	$52.00	$7,800
5-Mar	150	$52.00	$7,800	250	$57.00	$14,250	0	$0.00	$0	400	$55.13	$22,050
9-Mar	400	$55.13	$22,050	0	$0.00	$0	310	$55.13	$17,089	90	$55.13	$4,961
18-Mar	90	$55.13	$4,961	110	$62.00	$6,820	0	$0.00	$0	200	$58.91	$11,781
25-Mar	200	$58.91	$11,781	200	$64.00	$12,800	0	$0.00	$0	400	$61.45	$24,581
29-Mar	400	$61.45	$24,581	0	$0.00	$0	180	$61.45	$11,062	220	$61.45	$13,520
Total							490		$28,150	220		$13,520

Computation of COGS and ending inventory - Specific identification
Particulars	Cost of goods available for sale			Cost of goods sold			Ending Inventory
	Nos of units	Unit Cost	Cost of goods available for sale	Nos of units sold	Unit Cost	Cost of goods sold	Nos of units in ending inventory	Unit Cost	Ending inventory
Beginning inventory	150	$52.00	$7,800	90	$52.00	$4,680.00	60	$52.00	$3,120.00
Purchases:
5-Mar	250	$57.00	$14,250	220	$57.00	$12,540.00	30	$57.00	$1,710.00
18-Mar	110	$62.00	$6,820	70	$62.00	$4,340.00	40	$62.00	$2,480.00
25-Mar	200	$64.00	$12,800	110	$64.00	$7,040.00	90	$64.00	$5,760.00
Total	710		$41,670	490		$28,600.00	220		$13,070.00