Question

SA Savod Help Save & Exit Check 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 $50.00 per unit 400 units @ $55.00 per unit 420 units @ $85.00 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 120 units @ $60.00 per unit 200 units $62.00 per unit $95.00 per unit 160 units 580 units 820 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 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.

Answer 1

Part 3 FIFO Cost assigned to ending inventory $14800 Goods purchased Units cost Cost of goods sold Units Unit Date Unit Total $ Total $ cost Balance in inventory Units Unit Total $ cost 100 5000 100 5000 400 55 22000 50 Mar. 1 Mar. 5 400 55 22000 Mar. 9 50 100 320 55 5000 17600 80 80 55 55 Mar. 18120 60 7200 120 60 Mar. 25 200 62 12400 80 120 4400 4400 7200 4400 7200 12400 2400 12400 14800 200 Mar. 29 80 55 60 4400 4800 80 60 40 200 240 62 Ending inventory

LIFO Cost assigned to ending inventory $13680 Goods purchased Units Unit Date Total $ Cost of goods sold Units Unit cost Total $ cost Balance in inventory Unit Total $ cost 100 50 5000 100 50 5000 400 22000 Mar. 1 Mar. 5 400 55 Mar. 9 400 55 2050 22000 1000 80 4000 Mar. 18 120 60 7200 4000 7200 Mar. 25 200 62 12400 4000 Mar. 29 160 62 9920 7200 12400 4000 7200 2480 13680 40 62 Ending inventory 240

Weighted average
Cost assigned to ending inventory	$14352

	Goods purchased	Cost of goods sold	Balance in inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Mar. 1							100	50	5000
Mar. 5	400	55	22000				500	54	27000
Mar. 9				420	54	22680	80	54	4320
Mar. 18	120	60	7200				200	57.60	11520
Mar. 25	200	62	12400				400	59.80	23920
Mar. 29				160	59.80	9568	240	59.80	14352
Ending inventory	240		14352

Weighted average cost per unit = total cost / total number of units

Specific Identification
Cost assigned to ending inventory	$14060

	Goods purchased	Cost of goods sold	Balance in inventory
Date	Units	Unit cost	Total $	Units	Unit cost	Total $	Units	Unit cost	Total $
Mar. 1							100	50	5000
Mar. 5	400	55	22000				100	50	5000
							400	55	22000
Mar. 9				80	50	4000	20	50	1000
				340	55	18700	60	55	3300
Mar. 18	120	60	7200				20	50	1000
							60	55	3300
							120	60	7200
Mar. 25	200	62	12400				20	50	1000
							60	55	3300
							120	60	7200
							200	62	12400
Mar. 29				40	60	2400	20	50	1000
				120	62	7440	60	55	3300
							80	60	4800
							80	62	4960
Ending inventory	240		14060