Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Units Acquired at Cost 60 units$50.20 per unit 205 units$55.20 per unit Activities Units Sold at Retail Date 1 Beginning inventory 5 Purchase 9 Sales Mar. Mar. 220 units@$85.20 per unit Mar. 65 units$60.20 per unit 110 units $62.20 per unit Mar. 18 Purchase Mar. 25 Purchase 90 units $95.20 per unit Mar. 29 Sales 440 units 310 units Totals 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 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase.

Answer 1

Specific Identification Method
Date	TOTAL Units Available	Sold	Balance	Rate ($)	Amount
Mar-01	60	45	15	50.20	753
Mar-05	205	175	30	55.20	1,656
Mar-18	65	25	40	60.20	2,408
Mar-29	110	65	45	62.20	2,799
Total Closing Stock Value					7,616

FIFO
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/03/XXXX	Opening Inventory	60	50.2	3012		Closing Balance-1	60	50.2	3012
05/03/XXXX	Purchase	205	55.2	11316		-2	205	55.2	11316
	Total	265		14328		Total	265		14328
	Opening Balance -1	60	50.2	3012	09/03/XXXX	Sales	60	50.2	3012
	-2	205	55.2	11316	09/03/XXXX	Sales	160	55.2	8832
						Closing Balance-1	45	55.2	2484
	Total	265		14328		Total	265		14328
	Opening Balance	45	55.2	2484		Closing Balance-1	45	55.2	2484
18/03/XXXX	Purchase	65	60.2	3913		-2	65	60.2	3913
	Total	110		6397		Total	110		6397
	Opening Balance -1	45	55.2	2484		Closing Balance-1	45	55.2	2484
	-2	65	60.2	3913		-2	65	60.2	3913
25/03/XXXX	Purchase	110	62.2	6842		-3	110	62.2	6842
	Total	220		13239		Total	220		13239
	Opening Balance -1	45	55.2	2484	29/03/XXXX	Sales	45	55.2	2484
	-2	65	60.2	3913	29/03/XXXX	Sales	45	60.2	2709
	-3	110	62.2	6842	31/03/XXXX	Closing Balance-1	20	60.2	1204
					31/03/XXXX	-2	110	62.2	6842
	Total	220		13239			220		13239

LIFO
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/03/XXXX	Opening Inventory	60	50.2	3012		Closing Balance-1	205	55.2	11316
05/03/XXXX	Purchase	205	55.2	11316		-2	60	50.2	3012
	Total	265		14328		Total	265		14328
	Opening Balance -1	205	55.2	11316	09/03/XXXX	Sales	205	55.2	11316
	-2	60	50.2	3012	09/03/XXXX	Sales	15	50.2	753
						Closing Balance-1	45	50.2	2259
	Total	265		14328		Total	265		14328
	Opening Balance	45	50.2	2259		Closing Balance-1	65	60.2	3913
18/03/XXXX	Purchase	65	60.2	3913		-2	45	50.2	2259
	Total	110		6172		Total	110		6172
	Opening Balance -1	65	60.2	3913		Closing Balance-1	110	62.2	6842
	-2	45	50.2	2259		-2	65	60.2	3913
25/03/XXXX	Purchase	110	62.2	6842		-3	45	50.2	2259
	Total	220		13014		Total	220		13014
	Opening Balance -1	110	62.2	6842	29/03/XXXX	Sales	90	62.2	5598
	-2	65	60.2	3913	31/03/XXXX	Closing Balance-1	20	62.2	1244
	-3	45	50.2	2259	31/03/XXXX	-2	65	60.2	3913
					31/03/XXXX	-3	45	50.2	2259
	Total	220		13014			220		13014

WEIGHTED AVERAGE METHOD
Date	Particular (Debit)	Qty	Rate ($)	Amount	Date	Particular (Credit)	Qty	Rate ($)	Amount
01/03/XXXX	Opening Inventory	60	50.20	3012		Closing Balance-1	265	54.07	14328
05/03/XXXX	Purchase	205	55.20	11316
	Total	265		14328		Total	265		14328
	Opening Balance -1	265	54.07	14328	09/03/XXXX	Sales	220	54.07	11895
						Closing Balance-1	45	54.07	2433
	Total	265		14328		Total	265		14328
	Opening Balance	45	54.07	2433		Closing Balance-1	110	57.69	6346
18/03/XXXX	Purchase	65	60.20	3913
	Total	110		6346		Total	110		6346
	Opening Balance -1	110	57.69	6346		Closing Balance-1	220	59.95	13188
25/03/XXXX	Purchase	110	62.20	6842
	Total	220		13188		Total	220		13188
	Opening Balance -1	220	59.95	13188	29/03/XXXX	Sales	90	59.95	5395
					31/03/XXXX	Closing Balance-1	130	59.95	7793
	Total	220		13188			220		13188