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 Units Acquired at Cost 100 units @ $51.00 per unit 225 units @ $56.00 per unit 260 units @ $86.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 85 units @ $61.00 per unit 150 units @ $63.00 per unit 130 units @ $96.00 per unit 390 units 560 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 for Sale Unit Beginning inventory Purchases: March 5

Answer 1

Requirement: 1

Cost of goods Available for sale No of units Cost per unit Cost of goods available for sale Beginning inventory Purchases: Mar-05 100 51 5100 225 12600 56 5185 Mar-18 85 61. Mar-25 150 63 9450 Total 560 32335

Requirement: 2

Ending inventory in = 170 units

Requirement: 3

Perpetual FIFO Inventory Balance Unit Cost Total Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost Unit Cost Date Units Units Units Mar-01 100 51 5100 Mar-05 5100 225 56 100 51 225 56 12600 17700 325 3640 100 Mar-09 51 5100 65 56 8960 160 56 0 14060 3640 260 65 Mar-18 85 61 65 56 3640 85 61. 5185 8825 150 Mar-25 150 63 65 56 3640 85 61 5185 150 63 9450 18275 300 Mar-29 65 56 3640 20 61 1220 3965 65 61. 150 63 9450 130 10670 7605 170 Total 10670 21665 390 170

Perpetual LIFO Inventory Balance Unit Cost Total Cost Cost of Goods sold Goods Purchased Unit Cost Unit Cost Total Cost Date Units Units Units Mar-01 100 51 5100 Mar-05 225 56 100 51 5100 225 56 12600 17700 325 225 12600 Mar-09 56 65 51 3315 1785 35 51 0 14385 260 65 3315 Mar-18 85 61. 65 51 3315 85 61. 5185 8500 150 Mar-25 150 63 65 51 3315 85 61 5185 150 63 9450 300 17950 130 3315 Mar-29 63 8190 65 51 85 61 5185 1260 20 63 8190 130 170 9760 Total 22575 9760 390 170

Weighted Average Inventory Cost method Inventory Balance Unit Cost Total Cost Goods Purchsed Cost of Goods sold Unit Cost Unit Cost Total Cost Date Units Units Units Mar-01 100 51.00 5100 Mar-05 225 56 100 51.00 5100 225 56.00 12600 17700 325 54.46 260 14160 3540 Mar-09 54.46 65 54.46 3540 61 Mar-18 85 65 54.46 85 61.00 5185 8725 150 58.17 Mar-25 150 63 65 54.46 3540 85 61.00 5185 150 63.00 9450 300 60.58 18175 7875 60.58 Mar-29 130 60.58 170 10299 Total 390 22035 10299 460 170

Specific Identification method Inventory Balance Unit Cost Total Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost Date Units Unit Cost Units Units 100 Mar-01 51 5100 5100 100 Mar-05 225 56 51 12600 225 56 17700 325 Mar-09 65 51 3315 35 51 1785 10920 1680 195 56 30 56 3465 14235 260 65 Mar-18 35 85 61 51 1785 1680 30 56 5185 85 61. 150 8650 35 Mar-25 150 63 51 1785 30 56 1680 85 61. 5185 150 63 9450 270 18100 1785 Mar-29 45 61 2745 35 51 1680 85 63 5355 30 56 40 2440 61. 65 63 4095 10000 130 8100 170 Total 22335 170 10000 390

Requirement: 4

Gross margin Avg Cost FIFO LIFO Spec. ID Sales 34840 34840 34840 34840 Less: Cost of goods sold Gross profit 22335 21665 22575 22035 13175 12265 12805 12505