Question

The Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March 2019. 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. Date Activities Units Acquired at Cost Units Sold at Retail 100 units a $50.00 per unit 400 units a $55.00 per unit Mar. 1 Mar. 5 Mar 9 Mar. 18 no 420 units a $85.00 per unit Beginning inventory........ Purchase Sales Purchase.. .... Purchase Sales. Totals 120 units a $60.00 per unit 200 units a $62.00 per unit 160 units a $95.00 per unit 580 units 820 units

Answer 1

Ending inventory using FIFO :- Cost of goods Inventory Date Balance $ Purchased sold Mar 1 5,000 100 @ $ 50.00 100 @ $ 50.00 400 @ $ 55.00 400 @ 555 = $ 22,000 Mar 5 27,000 Mar 9 (100 @ $ 50.00+ (320 $ 55.00) = S 22,600 80 $ 55.00 4,400 Mar 18 120 @ S 60 = $ 7,200 11,600 80 @ S 55.00 120 @ $ 60.00 80 @ $ 55.00 120 @ $ 60.00 200 @ S 62.00 Mar 25 200 @ 5 62 = S 12,400 24,000 Mar 29 80 @ $ 55.00 80 @ S 60.00 = 5 9,200/- 23,520 40 @ 5 60.00 200 @ S 62.00 14,800 Total