Question

[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 240 units e$53.80 per unit 295 units e $58.80 per unit. 400 units e $88.80 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 155 units & $63.80 per unit 290 units @ $65.80 per unit 270 units @ $98.80 per unit 670 units 980 units Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of Goods Available for Sale # of units Cost per Cost of Goods Available Unit for Sale Beginning inventory Purchases March 5 March 18 March 25 Total

Answer 1

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Answer 1 Computation of Cost of Goods Available for sale and number of units available for sale Cost of Goods Available for sale Cost per Cost of Goods # of units unit Available for sale Beginning Inventory 240 $ 53.80 $ 12,912 Purchases: $ March 5 295 $ 58.80 $ 17,346 March 18 155 $ 63.80 $ 9,889 March 25 290 $ 65.80 $ 19,082 Total 980 $ 59,229 Answer 3 Perpetual FIFO Goods Purchased Cost of Goods sold Inventory Balance # of Cost per # of units Cost per Cost of # of Cost per Inventory Date units unit sold unit Goods sold units unit Balance Mar-01 240 @ $53.80 $ 12,912 Mar-05 295 @ $ 58.80 240 @ $53.80 $ 12,912 295 @ $58.80 $ 17,346 535 $ 30,258 Mar-09 240 @ $53.80 $ 12,912 135 @ $58.80 $ 7,938 160 @ $ 58.80 $ 9,408 400 $ 22,320 135 $ 7,938 Mar-18 155 @ $ 63.80 135 @ $58.80 $ 7,938 155 @ $63.80 $ 9,889 290 $ 17,827 Mar-25 290 @ $ 65.80 135 @ $ 58.80 $ 7,938 155 @ $63.80 $ 9,889 290 @ $65.80 $ 19,082 580 $ 36,909 Mar-29 135 @ $ 58.80 $ 7,938 20 @ $63.80 $ 1,276 135 @ $63.80 $ 8,613 290 @ $65.80 $ 19,082 270 $ 16,551 310 $ 20,358 Total 670 $ 38,871 310 $ 20,358 Answer 2 Ending Inventory 310 units Ending Inventory Units Units available for sale - Total units sold 980 - 670 310 units 11 Answer 4 Gross Margin Sales Less: COGS Gross Profit FIFO LIFO Avg cost $62,196 $ 62,196 $ $38,871 $ 40,761 $ $ 23,325 $ 21,435 $ Spec.ID 62,196 $62,196 47,617 $ 40,381 14,580 $ 21,815 Sales Mar-09 Mar-29 400 units @ $88.80 270 units @ $98.80 $ $ $ 35,520 26,676 62,196 Perpetual LIFO Goods Purchased Cost of Goods sold Inventory Balance # of Cost per # of units Cost per Cost of # of Cost per Inventory Date units unit sold unit Goods sold units unit Balance Mar-01 240 @ $53.80 $ 12,912 Mar-05 295 @ $ 58.80 240 @ $53.80 $ 12,912 295 @ $58.80 $ 17,346 535 $ 30,258 Mar-09 295 @ $ 58.80 $ 17,346 135 @ $53.80 $ 7,263 105 @ $53.80 $ 5,649 400 $ 22,995 135 $ 7,263 Mar-18 155 @ $ 63.80 135 @ $53.80 $ 7,263 155 @ $63.80 $ 9,889 290 $ 17,152 Mar-25 290 @ $ 65.80 135 @ $53.80 $ 7,263 155 $ 63.80 $ 9,889 290 @ $65.80 $ 19,082 580 $ 36,234 Mar-29 270 @ $65.80 $ 17,766 135 @ $53.80 $ 7,263 155 @ $63.80 $ 9,889 20 @ $65.80 $ 1,316 270 $ 17,766 310 $ 18,468 Total 670 $ 40,761 310 $ 18,468 M 535 Weighted avg Goods Purchased Cost of Goods sold Inventory Balance # of ost per # of units Cost per Cost of # of Cost per Inventory Date units unit sold unit Goods sold units unit Balance Mar-01 240 @ $53.80 $ 12,912 Mar-05 295 @ $ 58.80 240 @ $53.80 $ 12,912 295 @ $58.80 $ 17,346 $56.30 $ 30,121 Mar-09 400 @ $56.30 $ 22,520 135 @ $ 56.30 $ 7,601 Mar-18 155 @ $ 63.80 135 @ $ 56.30 $ 7,601 155 @ $63.80 $ 9,889 290 $60.05 $ 17,415 Mar-25 290 @ $ 65.80 135 @ $56.30 $ 7,601 155 @ $63.80 $ 9,889 290 @ $65.80 $ 19,082 580 $92.95 $ 53,911 Mar-29 270 @ $92.95 $ 25,097 310 @ $ 92.95 $ 28,815 Total 670 $ 47,617 310 $ 28,815 TTTTTTTT Specific Identification Method Goods Purchased Cost of Goods sold Inventory Balance # of Cost per # of units Cost per Cost of # of Cost per Inventory Date units unit sold unit Goods sold units unit Balance Mar-01 240 @ $53.80 $ 12,912 Mar-05 295 @ $ 58.80 240 @ $53.80 $ 12,912 295 @ $ 58.80 $ 17,346 535 $ 30,258 Mar-09 135 @ $53.80 $ 7,263 105 @ $ 56.30 $ 5,912 265 @ $58.80 $ 15,582 30 @ $ 58.80 $ 1,764 400 $ 22,845 135 $ 7,676 Mar-18 155 @ $ 63.80 105 @ $56.30 $ 5,912 30 @ $ 58.80 $ 1,764 155 @ $63.80 $ 9,889 290 $ 17,565 Mar-25 290 @ $ 65.80 105 @ $56.30 $ 5,912 30 @ $58.80 $ 1,764 155 @ $63.80 $ 9,889 290 @ $65.80 $ 19,082 580 $ 36,647 Mar-29 115 @ $63.80 $ 7,337 105 @ $ 56.30 $ 5,912 155 @ $65.80 $ 10,199 30 @ $ 58.80 $ 1,764 40 @ $63.80 $ 2,552 135 @ $65.80 $ 8,883 270 $ 17,536 310 $ 19,111 Total 6701 $ 40,381 310 $ 19,111 TTTT TI