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 70 units @ $50.40 per unit 210 units @ $55.40 per unit 230 units @ $85.40 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 70 units @ $60.40 per unit 120 units @ $62.40 per unit 100 units @ $95.40 per unit 330 units 470 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 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 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-05 210 55.40 Inventory Balance Units Unit Cost Total Cost 70 50.40 3528 70 50.40 3528 210 55.40 280 15162 50 55.40 2770 11634 | Mar-09 70 160 230 50.40 55.40 3528 8864 12392 50 50 Mar-18 70 60.40 55.40 60.40 70 120 50 Mar-25 120 62.40 55.40 60.40 62.40 2770 2770 4228 6998 2770 4228 7488 14486 1208 7488 8696 8696 Mar-29 50 50 55.40 60.40 120 240 20 120 140 140 2770 3020 5790 18182 6 0.40 62.40 100 Total 330

Goods Purchased Units Unit Cost Perpetual LIFO Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 210 55.40 Inventory Balance Units Unit Cost Total Cost 70 50.40 3528 70 50.40 3528 210 55.40 11634 280 151621 5050.40 2520 Mar-09 210 20 230 55.40 5 0.40 11634 1008 12642 25201 Mar-18 70 60.40 2520 50.40 60.40 Mar-25 120 62.40 50 50 70 120 50 70 120 240 50 70 20 140 50.40 60.40 62.40 4228 6748 2520 4228 7488 14236 2520 4228 1248 7996 7996 Mar-29 100 62.40 6240 50.40 60.40 62.40 100 6240 18882 Total 330 140

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 70 50.40 3528 210 55.40 70 50.40 3528 210 55.40 11634 280 54.15 15162 230 54.15 12455 54.15 2708 70 60.40 54.15 2708 60.40 4228 120 57.80 6936 120 62.40 50 54.15 2708 70 60.40 4228 120 62.40 7488 60.10 14424 100 60.10 6010 140 / 60.10 8414 330 18464 140 8414 Mar-25 Mar-29 Total 400

Goods Purchsed Units Unit Cost Specific Identification method Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 210 55.40 Mar-09 50 180 230 5 0.40 55.40 2520 9972 12492 Mar-18 70 60.40 Inventory Balance Units Unit Cost Total Cost | 70 50.40 3528 70 50.40 3528 210 55.40 11634 280 151621 20 50.40 1008 30 55.40 1662 50 2670 20 5 0.40 1008 30 55.40 1662 70 60.40 4228 120 6898 20 50.40 1008 30 55.40 1662 70 60.40 4228 12062.40 7488 210 143861 2050.40 1008 30 55.40 1662 40 / 60.40 2416 50 62.40 3120 140 8206 140 8206 Mar-25 120 62.40 Mar-29 13060.40 62.40 1812 4368 70 100 330 6180 18672 Total