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 Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals Units Acquired at Cost 230 units @ $53.60 per unit 290 units@ $58.60 per unit 150 units @ $63.60 per unit 280 units@ $65.60 per unit 390 units @ $88.60 per unit 260 units @ $98.69 per unit 650 units 950 units 2. Compute the number of units in ending inventory. Ending inventory units

Answer 1

Requirement 2 Ending Inventory 300 Units Requirement 3 Perpetual FIFO Goods Purchased No of Units Cost per Unit Mar-01 Cost of goods sold Cost per Unit Cost of goods sold Date No of Units sold Inventory Balance No of Units Cost per Unit Inventory Balance 230 $ 53.60 $ 12,328.00 Mar-05 290 $ 58.60 230 $ 290 $ 53.60 $ 58.60 $ 12,328.00 16,994.00 Mar-09 130 $ 58.60 $ 230 $ 160 $ 53.60 $ 58.60 $ 7,618.00 12,328.00 9,376.00 Mar-18 150 $ 63.60 130 $ 150 $ 58.60 $ 63.60 $ 7,618.00 9,540.00 Mar-25 280 $ 65.60 130 $ 150 $ 280 $ 58.60 $ 63.60 $ 65.60 $ 7,618.00 9,540.00 18,368.00 Mar-29 130 $ 130 $ 58.60 $ 63.60 $ 7,618.00 8,268.00 20 $ 280 $ 63.60 $ 65.60 $ 1,272.00 18,368.00 Totals 37,590.00 $ 19,640.00 Perpetual LIFO Date Goods Purchased Cost of goods sold Inventory Balance No of Units Cost per Unit No of Units sold Cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 230 $ 53.60 $ 12,328.00 Mar-05 290 $ 58.60 230 $ 290 $ 53.60 $ 58.60 $ 12,328.00 16,994.00 Mar-09 130 $ 53.60 $ 6,968.00 290 $ 100 $ 58.60 $ 53.60 $ 16,994.00 5,360.00 Mar-18 150 $ 63.60 130 $ 150 $ 53.60 $ 63.60 $ 6,968.00 9,540.00 Mar-25 280 $ 65.60 130 $ 150 $ 280 $ 53.60 $ 63.60 $ 65.60 $ 6,968.00 9,540.00 18,368.00 Mar-29 260 $ 65.60 $ 17,056.00 130 $ 150 $ 20 $ 53.60 $ 63.60 $ 65.60 $ 6,968.00 9,540.00 1,312.00 Totals 39,410.00 $ 17,820.00

Weighted Average Perpetual Goods Purchased Cost of goods sold Inventory Balance Date No of Units Cost per Unit No of Units sold Cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 230 $ 53.60 $ 12,328.00 Mar-05 290 $ 58.60 230 $ 290 $ 520 $ 53.60 $ 58.60 $ 56.39 $ 12,328.00 16,994.00 29,322 Average Mar-09 390 $ 56.39 $ 21,992 130 $ 56.39 $ 7,331 Mar-18 150 $ 63.60 130 $ 150 $ 280 $ 56.39 $ 63.60 $ 60.25 $ 7,331 9,540 16,871 Average Mar-25 280 $ 65.60 280 $ 280 $ 560 $ 60.25 $ 65.60 $ 62.93 $ 16,871 18,368 35,239 Average Mar-29 260 $ 62.93 $ 16,361 300 $ 62.93 $ 18,878 Totals 38,352 18,878 Specific Identification Method Goods Purchased Cost of goods sold Inventory Balance Date No of Units Cost per Unit No of Units sold Cost per Unit Cost of goods sold No of Units Cost per Unit Inventory Balance Mar-01 230 $ 53.60 $ 12,328.00 Mar-05 290 $ 58.60 230 $ 290 $ 53.60 $ 58.60 $ 12,328.00 16,994.00 Mar-09 130 $ 260 $ 53.60 $ 58.60 $ 6,968.00 15,236.00 100 $ 30 $ 53.60 58.60 $ 5,360.00 1,758.00 Mar-18 150 $ 63.60 100 $ 30 $ 150 $ 53.60 58.60 $ 63.60 $ 5,360.00 1,758.00 9,540.00 Mar-25 280 $ 65.60 100 $ 30 $ 150 $ 280 $ 53.60 $ 58.60 $ 63.60 $ 65.60 $ 5,360.00 1,758.00 9,540.00 18,368.00 Mar-29 110 $ 150 $ 63.60 $ 65.60 $ 6,996.00 9,840.00 100 $ 30 $ 40 $ 130 $ 53.60 $ 58.60 $ 63.60 $ 65.60 $ 5,360.00 1,758.00 2,544.00 8,528.00 Totals 39,040.00 $ 18,190.00 Requirement 4 Gross Margin Less : Cost of goods sold Gross profit FIFO LIFO Avg Cost Spec Id. $ 60,190.00 $ 60,190.00 60,190.00 $ 60,190.00 $ (37,590.00 $ (39,410.00 $ (38,352) $ (39,040.00) $ 22,600.00 $ 20,780.00 $ 21,838 $ 21,150.00 Note : Do comment for any issues