Question

Problem 6-1A Perpetual: Alternative cost flowsP Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Units Acquired at Cost Date Activities Units Sold at Retail Beginning inventory 100 units @ $50.00 per unit Mar. 1 Purchase Mar. 5 400 units@$55.00o per unit Мaг. 9 Sales 420 units @$85.00 per unit 120 units @ $60.00 per unit Mar. 18 Purchase Mar. 25 Purchase 200 units @ $62.00 per unit 160 units @ $95.00 per unit Mar. 29 Sales 580 units Totals 820 units Required 1. Compute cost of goods available for sale and the number of units available for sale 2. Compute the number of units in ending inventory 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (e) weighted average, and (d) specific identification. (Round all amounts to cents.) Check (3) Ending inventory: FIFO, $14,800 LIFO. $13.680 WA $14 352 four costing methods in part 3

Answer 1

S 5,000.00 Cost of Goods available for sale - Units Cost Opening Inventory Mar. 1 100.00 $ 50.00 Purchases 400.00 $ 55.00 Mar. 18 120.00 $ 0.00 Mar. 25 200.00 $ 62.00 Total cost of goods avalable for sale $22,000.00 $ 7,200.00 $12,400.00 S4G,600.00 Unts Sold = No of units in closing Inventory Opening Balance Units Acquired 100.00 100.00 400.00 500.00 80.00 120.00 200.00 200.00 Mar. 1 Mar. 5 Mar. 9 Mar. 18 Mar. 25 Mar. 29 Total 420.00 Closing Balance 100.00 500.00 80.00 200.00 100.00 240.00 240.00 160.00 580.00 100.00 720.00 Cost of ending inventory under each of methods To Method Opening Balance Units Cost 100.00 50.00 Units Acquired Amount Units 5,000.00 Cust A mount Unte Sold Units Cost Amount Closing Balance Units 100.00 Mar. 1 Coat 50.00 Amount 5,000.00 Mar. 5 100.00 50.00 5,000.00 400.00 55.00 22,000.00 100.00 5,000.00 22,000.00 400.00 55.00 Mar. 9 100.00 109.00 50.00 55.00 5,000.00 22,000.00 20.00 400.00 50.00 55.00 1,000.00 22,000.00 80.00 50.00 4,000.00 Mar. 18 80.00 50.00 4,000.00 120.00 60.00 7,200.00 80.00 120.00 50.00 60.00 4,000.00 7,200.00 Mar. 25 30.00 120.00 50.00 60.00 4,000.00 7,200.00 200.00 62.00 12.400.00 80.00 120.00 200.00 50.00 60.00 2.00 4.000.00 2.200.00 12,400.00 Mar. 20 160.00 67.00 4,400.00 80.00 80.00 120.00 200.00 50.00 50.00 62.00 4,000.00 7,200.00 12.400.00 50.00 90.00 62.00 4,000.00 7.200.00 2.400.00 13,680.00 40.00 240.00 LUO Method Opening Balance Units 100.00 Units Acquired Amount Units Cost 5,000.00 Unts Sald Units Amount Cost Cost 50.00 Amount Closing Balance Units 100.00 Coat 50.00 Amount 5,000.00 Mar. 1 Mar. 5 100.00 50.00 5,000.00 400.00 55.00 22,000.00 100.00 400.00 50.00 55.00 5,000.00 22.000.00 Mar. 9 100.00 400.00 50.00 55.00 5,000.00 22,000.00 20.00 100.00 50.00 55.00 1,000.00 22,000.00 80.00 50.00 4,000.00 80.00 50.00 4,000.00 120.00 60.00 7,200.00 80.00 120.00 50.00 60.00 4,000.00 7,200.00 Mar. 25 30.00 120.00 50.00 60.00 4,000.00 7.200.00 200.00 62.00 12,400.00 120.00 200.00 50.00 60.00 62.00 4.000.00 7,200.00 12.400.00 Mar. 20 160.00 62.00 4,400.00 80.00 80.00 120.00 200.00 50.00 50.00 62.00 4,000.00 7,200.00 12,400.00 50.00 60.00 62.00 4,000.00 7.200.00 2.400.00 13,680.00 40.00 240.00 WA Method Opening Balance Unts Sald Units Units Cost Amount Cost Amount 55.00 22,000.00 Mar. 1 Mar. 5 Mar. 9 Mar. 1B Mar. 25 Mar. 20 100.00 100.00 500.00 30.00 200.00 400.00 Cost 50.00 50.00 54.00 54.00 57.60 50.00 Units Acquired Amount Units 5,000.00 5,000.00 100.00 22,000.00 4.320.00 120.00 11.520.00 200.00 23,920.00 420.00 54.00 22,600.00 Closing Balance Units Cost 100.00 50.00 SC0.00 54.00 80.00 54.00 200.00 57.60 400.00 59.00 2 40.00 59.80 Amount 5,000.00 27,000.00 4,320.00 11.520.00 23.920.00 14,352.00 60.00 62.00 7,200.00 12.400.00 160.00 59.80 9,568.00 Specific Identication Method Opening Balence Units Acquired Amount Units Cost 5,000.00 Amount Unt Sold Unts Cost Cast 50.00 Amount Clusing Balance Units Cost 100.00 50.00 Amount 5,000.00 Mar. 1 100.00 Mar. 5 100.00 50.00 5,000.00 400.00 55.00 22,000.00 100.00 400.00 50.00 55.00 5,000.00 22.000.00 Mar. 9 20.00 50.00 100.00 400.00 50.00 55.00 5,000.00 22.000.00 30.00 340.00 50.00 55.00 4,000.00 18.700.00 60.00 1,000.00 3.300.00 Mar. 18 20.00 50.00 50.00 55.00 1,000.00 3,300.00 120.00 60.00 7,200.00 20.00 60.00 120.00 50.00 55.00 60.00 1,000.00 3,300.00 7,200.00 Mar. 25 200.00 62.00 12,400.00 20.00 60.00 120.00 50.00 55.00 60.00 1,000.00 3.300.00 7,200.00 20.00 60.00 120.00 200.00 50.00 55.00 60.00 62.00 1,000.00 3,300.00 7,200.00 12.400.00 Mar. 29 20.00 $0.00 40.00 120.00 GO.CO2.400.00 62.00 2.440,00 50.00 55.00 60.00 DZ.UU 1.000.00 3,300.00 7,200.00 12,400.00 20.00 60.00 80.00 80.00 240.00 50.00 55.00 60.00 0 2.00 120.00 200.00 1,000.00 3,300.00 4,800.00 4.960.00 14,060.00