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.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Mar. | 1 | Beginning inventory | 110 | units | @ $51.20 per unit | |||||||
Mar. | 5 | Purchase | 230 | units | @ $56.20 per unit | |||||||
Mar. | 9 | Sales | 270 | units | @ $86.20 per unit | |||||||
Mar. | 18 | Purchase | 90 | units | @ $61.20 per unit | |||||||
Mar. | 25 | Purchase | 160 | units | @ $63.20 per unit | |||||||
Mar. | 29 | Sales | 140 | units | @ $96.20 per unit | |||||||
Totals | 590 | units | 410 | units | ||||||||
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 200 units from the March 5 purchase; the March 29 sale consisted of 50 units from the March 18 purchase and 90 units from the March 25 purchase.
Ans. 3 a | Perpetual FIFO: | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
01-Mar | 110 | $51.20 | $5,632 | 110 | $51.20 | $5,632 | |||||
05-Mar | 230 | $56.20 | $12,926 | 110 | $51.20 | $5,632 | |||||
230 | $56.20 | $12,926 | |||||||||
09-Mar | 110 | $51.20 | $5,632 | ||||||||
160 | $56.20 | $8,992 | 70 | $56.20 | $3,934 | ||||||
18-Mar | 90 | $61.20 | $5,508 | 70 | $56.20 | $3,934 | |||||
90 | $61.20 | $5,508 | |||||||||
25-Mar | 160 | $63.20 | $10,112 | 70 | $56.20 | $3,934 | |||||
90 | $61.20 | $5,508 | |||||||||
160 | $63.20 | $10,112 | |||||||||
29-Mar | 70 | $56.20 | $3,934 | ||||||||
70 | $61.20 | $4,284 | 20 | $61.20 | $1,224 | ||||||
160 | $63.20 | $10,112 | |||||||||
Total | Cost of goods sold | $22,842 | Ending inventory | $11,336 | |||||||
*In FIFO method the units that have purchased first (earliest), are released the first one and the ending inventory | |||||||||||
units remain from the last (recent) purchases. | |||||||||||
Ans. 3 b | LIFO: | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
01-Mar | 110 | $51.20 | $5,632 | 110 | $51.20 | $5,632 | |||||
05-Mar | 230 | $56.20 | $12,926 | 110 | $51.20 | $5,632 | |||||
230 | $56.20 | $12,926 | |||||||||
09-Mar | 230 | $56.20 | $12,926 | ||||||||
40 | $51.20 | $2,048 | 70 | $51.20 | $3,584 | ||||||
18-Mar | 90 | $61.20 | $5,508 | 70 | $51.20 | $3,584 | |||||
90 | $61.20 | $5,508 | |||||||||
25-Mar | 160 | $63.20 | $10,112 | 70 | $51.20 | $3,584 | |||||
90 | $61.20 | $5,508 | |||||||||
160 | $63.20 | $10,112 | |||||||||
29-Mar | 140 | $63.20 | $8,848 | 70 | $51.20 | $3,584 | |||||
90 | $61.20 | $5,508 | |||||||||
20 | $63.20 | $1,264 | |||||||||
Total | Cost of goods sold | $23,822 | Ending inventory | $10,356 | |||||||
*In LIFO method the units that have purchased last, are released the first one and the ending inventory | |||||||||||
units remain from the first purchases. | |||||||||||
Ans. 3C | Weighted Average | ||||||||||
Purchase | Cost of goods sold | Balance | |||||||||
Date | Quantity | Rate | Total cost | Quantity | Rate | Total cost | Quantity | Rate | Total cost | ||
01-Mar | 110 | $51.20 | $5,632 | 110 | $51.20 | $5,632 | |||||
05-Mar | 230 | $56.20 | $12,926 | 340 | $54.58 | $18,558 | |||||
09-Mar | 270 | $54.58 | $14,737 | 70 | $54.58 | $3,821 | |||||
18-Mar | 90 | $61.20 | $5,508 | 160 | $58.31 | 9329 | |||||
25-Mar | 160 | $63.20 | $10,112 | 320 | $60.75 | 19441 | |||||
29-Mar | 140 | $60.75 | $8,505 | 180 | $60.75 | $10,936 | |||||
Total | Cost of goods sold | $23,242 | Ending inventory | $10,936 | |||||||
*Weighted average rate is calculated by using the formula of (Total available balance / Total units available). |
Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual...
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 110 units @ $51.20 per unit 230 units @ $56.20 per unit 270 units @ $86.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 90 units @...
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 110 units @ $51.20 per unit 230 units @ $56.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 270 units @ $86.20 per unit 90 units @...
I need FIFO, LIFO, Weighted Average, Specific Id 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 110 units @ $51.20 per unit 230 units @ $56.20 per unit 270 units @ $86.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar 9 Sales Mar. 18 Purchase Mar. 25...
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 Acquired at Cost 170 units @ $52.40 per unit 260 units @ $57.40 per unit Mar. Units Sold at Retail Date Activities Mar. 1 Beginning inventory 5 Purchase Mar 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 330 units@ $87.40 per unit 120 units@ $62.40 per...
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. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 230 units @ $53.60 per unit Mar. 5 Purchase 290 units @ $58.60 per unit Mar. 9 Sales 390 units @ $88.60 per unit Mar. 18 Purchase 150 units @ $63.60 per unit Mar. 25 Purchase 280...
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. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 240 units @ $53.80 per unit Mar. 5 Purchase 295 units @ $58.80 per unit Mar. 9 Sales 400 units @ $88.80 per unit Mar. 18 Purchase 155 units @ $63.80 per unit Mar. 25 Purchase 290...
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 @...
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 60 units @ $50.20 per unit 205 units @ $55.20 per unit 220 units @ $85.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 65 units @...
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 150 units @ $52.00 per unit 250 units @ $57.00 per unit 310 units @ $87.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 110 units @...
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 90 units @ $50.80 per unit 220 units @ $55.80 per unit 250 units @ $85.80 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 80 units @...