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 160 units @ $52.20 per unit 255 units @ $57.20 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 320 units @ $87.20 per unit 115 units @ $62.20 per unit 210 units @ $64.20 per unit 190 units @ $97.20 per unit 510 units Totals 740 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 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase.

Answer 1

Goods Purchsed Units Unit Cost Perpetual FIFO Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 Units 160 160 255 255 57.20 Inventory Balance Unit Cost Total Cost 52.20 8352 52.20 8352 57.20 14586 22938 57.20 5434 4151 Mar-09 160 160 320 52.20 57.20 8352 9152 17504 195 95 Mar-18 115 62.20 57.20 62.20 Mar-25 210 95 57.20 115 62.20 5434 5434 7153 12587 5434 7153 13482 26069 1244 13482 14726 14726 64.20 Mar-29 57.20 62.20 210 420 20 210 230 5434 5909 11343 95 62.20 64.20 190 Total 510 28847 230

Goods Purchased Units Unit Cost Date Mar-01 Mar-05 Perpetual LIFO Cost of Goods sold Units Unit Cost Total Cost Units 160 160 1255 255 57.20 Inventory Balance Unit Cost Total Cost 52.20 8352 52.20 8352 57.20 14586 22938 5 2.20 4959 4151 Mar-09 | 95 255 65 320 57.20 52.20 14586 3393 17979 95 Mar-18 115 62.20 52.20 62.20 Mar-25 210 I 64.20 115 210 95 115 210 52.20 62.20 64.20 49591 4959 7153 12112 4959 7153 13482 25594 4959 420 Mar-29 190 64.20 12198 95 115 52.20 62.20 64.20 7153 20 190 510 12198 30177 230 230 1284 13396 13396 Total

Date Mar-01 Mar-05 Weighted Average Inventory Cost method Goods Purchsed Cost of Goods sold | Units Unit Cost Units Unit Cost Total Cost Units 160 255 57.20 160 255 415 320 55.27 17687 115 62.20 Mar-09 Mar-18 Inventory Balance Unit Cost Total Cost 52.20 8352 52.20 8352 57.20 14586 55.27 22938 55.27 5251 55.27 5251 62.20 59.07 12404 55.27 62.20 7153 64.20 13482 61.63 25886 61.63 14176 14176 7153 210 Mar-25 210 64.20 95 115 5251 210 420 190 61.63 Mar-29 Total 11710 29397 230 230 580 510

Goods Purchsed Units Unit Cost Specific Identification method Cost of Goods sold Units Unit Cost Total Cost Date Mar-01 Mar-05 255 57.20 Units 160 160 255 415 Mar-09 95 225 320 52.20 57.20 4959 12870 17829 Mar-18 115 6 2.20 115 Inventory Balance Unit Cost Total Cost 52.20 8352 52.20 8352 57.20 14586 229381 52.20 3393 57.20 1716 5109 52.20 3393 57.20 1716 62.20 7153 12262 52.20 3393 57.20 1716 62.20 7153 64.20 13482 25744 52.20 3393 57.20 1716 62.20 2488 64.20 6099 13696 13696 Mar-25 210 64.20 115 210 390 Mar-29 75 115 62.20 64.20 4665 7383 40 95 12048 230 190 510 Total 29877 230