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 180 units @ $ 70 per unit 480 units @ $75 per unit 500 units @ $105 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 280 units @ $80 per unit 360 units @ $82 per unit 320 units @ $115 per unit 820 units 1,300 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 410 units from the March 5 purchase; the March 29 sale consisted of 120 units from the March 18 purchase and 200 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 for Sale $ 0 # of units sold Cost of Goods Sold Cost per # of units in ending inventory Ending Inventory unit $ 0.00 $ $ 0.00 $ 0 0 Beginning inventory Purchases: March 5 March 18 March 25 Total $ $ 0.00 0.00 $ $ $ 0.00 0.00 0.00 0

Answer 1

a) Periodic FIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units	Cost per unit	Ending Inventory
Beginning inventory	180	70.00	12600	180	70.00	12600	0	0.00	0
Purchases:
March 5	480	75.00	36000	480	75.00	36000	0	0.00	0
March 18	280	80.00	22400	160	80.00	12800	120	80.00	9600
March 25	360	82.00	29520			0	360	82.00	29520
Total	1300		100520	820		61400	480		39120
b) Periodic LIFO	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units	Cost per unit	Ending Inventory
Beginning inventory	180	70.00	12600			0	180	70.00	12600
Purchases:
March 5	480	75.00	36000	180	75.00	13500	300	75.00	22500
March 18	280	80.00	22400	280	80.00	22400			0
March 25	360	82.00	29520	360	82.00	29520			0
Total	1300		100520	820		65420	480		35100
c) Average Cost	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units	Cost per unit	Ending Inventory
Beginning inventory	180	70.00	12600
Purchases:
March 5	480	75.00	36000
March 18	280	80.00	22400
March 25	360	82.00	29520
Total	1300		100520	820	77.32	63406.4	480	77.32	37113.6
Average cost per unit = Cost of goods available for sale/Number of units = $100520/1300 = $77.32
d) Specific Identification	Cost of Goods Available for Sale			Cost of Goods Sold			Ending Inventory
	# of units	Cost per unit	Cost of Goods Available for Sale	# of units sold	Cost per unit	Cost of Goods Sold	# of units	Cost per unit	Ending Inventory
Beginning inventory	180	70.00	12600	90	70.00	6300	90	70.00	6300
Purchases:
March 5	480	75.00	36000	410	75.00	30750	70	75.00	5250
March 18	280	80.00	22400	120	80.00	9600	160	80.00	12800
March 25	360	82.00	29520	200	82.00	16400	160	82.00	13120
Total	1300		100520	820		63050	480		37470