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 Date activities Units acquired at Cost Units sold at Retail Mar. 1 Beginning inventory 180 units $52.60 per unit Mar. 5 Purchase 265 units $57.60 per unit 9 Sales 340 units $87.60 per unit Mar. 18 Purchase 125 units. $62.60 per unit Mar. 25 Purchase 230 units # $64.60 per unit Mar. 29 Sales 210 units . $97.60 per unit Totals 800 units 550 units Mar. 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 105 units from beginning inventory and 235 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 125 units from the March 25 purchase.

Answer 1

Warner Woods FIFO Perpetual Purchase Per unit cost Total Cost Units Units Date Mar-01 Cost of goods sold Per unit cost Total Cost Units 180 Balance Per unit cost Total Cost 52.6 9468 Mar-05 265 57.6 15264 180 52.6 57.6 57.6 9468 15264 265 Mar-09 52.6 105 6048 180 160 9468 9216 57.6 Mar-18 125 62.6 7825 105 57.6 62.6 125 Mar-25 230 64.6 14858 105 57.6 6048 7825 6048 7825 14858 125 62.6 230 64.6 Mar-29 105 6048 20 57.6 62.6 105 6573 230 62.6 64.6 62.6 64.6 1252 14858 1252 14858 Mar-31 20 230 Purchases 37947 COGS 31305 Ending 16110 LIFO Perpetual Purchase Cost of goods sold Per unit cost Total Cost Units Per unit cost Total Cost Units Units Date Mar-01 Mar-05 Balance Per unit cost 52.6 180 Total Cost 9468 9468 265 57.6 15264 180 52.6 265 57.6 15264 5523 Mar-09 265 105 52.6 57.6 52.6 15264 3945 75 Mar-18 125 62.6 7825 105 52.6 5523 125 62.6 7825 Mar-25 230 64.6 14858 105 52.6 62.6 5523 7825 125 230 65 14858 Mar-29 210 65 13566 105 52.6 5523 125 7825 62.6 64.6 20 1292 Mar-31 105 52.6 125 5523 7825 1292 62.6 64.6 Ending 20 Purchases 37947 COGS 32775 14640

Weighted Average Perpetual Purchase Date Units Per unit cost Total Cost Units Mar-01 Mar-05 265 57.6 15264 Cost of goods sold Per unit cost Total Cost Units 180 180 265 445 Mar-09 340 55.58 18896 105 Mar-18 125 62.6 7825 105 Balance Per unit cost Total Cost 52.6 9468 52.6 9468 57.6 15264 55.58 24732 55.58 5836 55.58 5836 62.6 7825 59.39 13661 59.39 13661 64.6 14858 62.00 28519 62.00 15499 62.00 15499 Ending 15499 125 230 Mar-25 230 64.6 14858 230 230 460 250 210 62.00 13019 Mar-29 Mar-31 250 Purchases 37947 COGS 31916 Balance Specific Identification Purchase Date Units Per unit cost Total Cost Units Mar-01 Cost of goods sold Per unit cost Total Cost Units 180 180 Mar-05 265 57.6 15264 265 Per unit cost Total Cost 52.6 9468 52.6 9468 57.6 15264 52.6 3945 57.6 1728 52.6 3945 Mar-09 105 75 52.6 57.6 5523 13536 235 30 Mar-18 125 62.6 7825 75 30 57.6 1728 125 62.6 7825 3945 Mar-25 230 64.6 14858 75 52.6 30 57.6 1728 7825 125 62.6 230 64.6 Mar-29 85 5321 75 52.6 62.6 64.6 125 8075 30 57.6 14858 3945 1728 2504 6783 40 62.6 105 64.6 52.6 Mar-31 75 3945 30 57.6 40 62.6 1728 2504 6783 105 64.6 Ending Purchases 37947 COGS 32455 14960

FIFO LIFO 50280 Gross Margin Sales Less:COGS Gross Profit 50280 -31305 Avg. Cost 50280 -31916 18364 Spec. ID 50280 -32455 17825 -32775 17505 18975 Cost of goods available for sales and number of units available for use Cost of goods # of units Cost per unit available for sale 180 52.6 9468 265 Beginning Inv. Purchases: Mar-05 Mar-18 Mar-25 Total 57.6 62.6 64.6 15264 7825 125 230 14858 800 47415