Question

Required information Problem 5-1A Perpetual: Alternative cost flows LO P1 [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 120 units $51.40 per unit 235 units @ $56.40 per unit 280 units $86.40 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar 25 Purchase Mar. 29 Sales Totals 95 units 170 units $61.40 per unit $63.40 per unit 150 units @ $96.40 per unit 430 units 620 units

Answer 1

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Due to character limit I am attaching the images for solution of Weigh Perpetual Weighted Average Cost of Goods available for sale No. of Units Cost per unit Amount 1-Mar 120.00 51.40 6,168.00 Date Cost of Goods sold Inventory Balance No. of Units Cost per unit Cost of Goods sold No. of Units Cost per unit Inventory Balance 120.00 51.40 6,168.00 5-Mar 235.00 56.40 13,254.00 120.00 235.00 355.00 51.40 56.40 54.71 6,168.00 13,254.00 19,422.00 Use this for weighted average 9-Mar 280.00 54.71 15,318.76 75.00 54.71 4,103.24 18-Mar Mar 95.00 61.40 5,833.00 75.00 95.00 170.00 54.71 61.40 58.45 4,103.24 5,833.00 9,936.24 Use this for weighted average 25-Mar 170.00 63.40 10,778.00 170.00 170.00 340.00 58.45 63.40 60.92 9,936.24 10,778.00 20,714.24 Use this for weighted average 150.00 60.92 9,138.64 60.92 29-Mar Ending Inventory 190.00 190.00 11,575.60 11,575.60 Perpetual Specific Identification Method Cost of Goods available for sale Date No. of Units Cost per unit Amount 1-Mar 120.00 51.40 6,168.00 Cost of Goods sold Inventory Balance No. of Units Cost per unit Cost of Goods sold No. of Units Cost per unit Inventory Balance 120.00 51.40 6,168.00 5-Mar 235.00 56.40 13,254.00 120.00 235.00 51.40 56.40 6,168.00 13,254.00 9-Mar 75.00 205.00 51.40 56.40 3,855.00 11,562.00 45.00 30.00 51.40 56.40 2,313.00 1,692.00 18-Mar 95.00 61.40 5,833.00 45.00 30.00 95.00 51.40 56.40 61.40 2,313.00 1,692.00 5,833.00 25-Mar 170.00 63.40 10,778.00 45.00 30.00 95.00 170.00 51.40 56.40 61.40 63.40 2,313.00 1,692.00 5,833.00 10,778.00 29-Mar 51.40 55.00 95.00 61.40 63.40 3,377.00 6,023.00 45.00 30.00 40.00 75.00 190.00 56.40 61.40 63.40 2,313.00 1,692.00 2,456.00 4,755.00 11,216.00 Ending Inventory ted average and Specific identification method:

Warnerwoods	Perpetual FIFO
Date	Cost of Goods available for sale			Cost of Goods sold			Inventory Balance
	No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
1-Mar	120.00	51.40	6,168.00				120.00	51.40	6,168.00
5-Mar	235.00	56.40	13,254.00				120.00	51.40	6,168.00
							235.00	56.40	13,254.00
9-Mar				120.00	51.40	6,168.00	75.00	56.40	4,230.00
				160.00	56.40	9,024.00
18-Mar	95.00	61.40	5,833.00				75.00	56.40	4,230.00
							95.00	61.40	5,833.00
25-Mar	170.00	63.40	10,778.00				75.00	56.40	4,230.00
							95.00	61.40	5,833.00
							170.00	63.40	10,778.00
29-Mar				75.00	56.40	4,230.00	20.00	61.40	1,228.00
				75.00	61.40	4,605.00	170.00	63.40	10,778.00
Ending Inventory							190.00		12,006.00
Perpetual LIFO
Date	Cost of Goods available for sale			Cost of Goods sold			Inventory Balance
	No. of Units	Cost per unit	Amount	No. of Units	Cost per unit	Cost of Goods sold	No. of Units	Cost per unit	Inventory Balance
1-Mar	120.00	51.40	6,168.00				120.00	51.40	6,168.00
5-Mar	235.00	56.40	13,254.00				120.00	51.40	6,168.00
							235.00	56.40	13,254.00
9-Mar				235.00	56.40	13,254.00	75.00	51.40	3,855.00
				45.00	51.40	2,313.00
18-Mar	95.00	61.40	5,833.00				75.00	51.40	3,855.00
							95.00	61.40	5,833.00
25-Mar	170.00	63.40	10,778.00				75.00	51.40	3,855.00
							95.00	61.40	5,833.00
							170.00	63.40	10,778.00
29-Mar				150.00	63.40	9,510.00	75.00	51.40	3,855.00
							95.00	61.40	5,833.00
							20.00	63.40	1,268.00
Ending Inventory							190.00		10,956.00