Question

IU13. 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 Retall 100 units a $50.00 per unit 400 units a $55.00 per unit Mar. 1 Mar. 5 Mar. 9 Mar. 18 Mar. 25 Mar. 29 420 units @ $85.00 per unit Beginning inventory Purchase.... Sales ........ Purchase........ Purchase...... Sales ...... Totals. ... 120 units a $60.00 per unit 200 units @ $62.00 per unit 820 units 160 units @ $95.00 per unit 580 units

Answer 1

Warner Woods FIFO Perpetual Purchase Per unit cost Total Cost Units Units Date Mar-01 Mar-05 Balance Per unit cost Total Cost 50 5000 5000 22000 4400 400 55 Cost of goods sold Per unit cost Total Cost Units 100 100 400 5000 55 17600 22000 Mar-09 100 320 50 80 Mar-18 120 60 7200 Mar-25 200 62 12400 120 200 Mar-29 4400 7200 4400 7200 12400 2400 12400 2400 12400 14800 4400 4800 80 60 200 Mar-31 200 62 Purchases 41600 COGS 31800 Ending LIFO Perpetual Purchase Per unit cost Total Cost Cost of goods sold Units Per unit cost Total Cost Balance Per unit cost Units Date Mar-01 Mar-05 Units 100 400 55 22000 100 Total Cost 5000 5000 22000 4000 400 Mar-09 22000 400 20 1000 Mar-18 120 60 7200 Mar-25 200 62 12400 80 120 Mar-29 160 62 9920 4000 7200 4000 7200 12400 4000 7200 2480 4000 7200 2480 13680 Mar-31 60 120 40 62 Purchases 41600 COGS 32920 Ending

Weighted Average Perpetual Purchase Date Units Per unit cost Total Cost Units Mar-01 Mar-05 400 55 22000 Cost of goods sold Per unit cost Total Cost Units 100 100 400 500 54.00 22680 420 Mar-09 Mar-18 120 60 7200 80 Balance Per unit cost Total Cost 50 5000 50 5000 55 22000 54.00 27000 54.00 4320 54.00 4320 60 7200 57.60 11520 57.60 11520 62 12400 59.80 23920 59.80 14352 59.80 14352 Ending 14352 Mar-25 200 62 12400 120 200 200 200 400 240 240 160 59.80 9568 Mar-29 Mar-31 Purchases 41600 COGS 32248 Specific Identification Purchase Date Units Per unit cost Total Cost Units Mar-01 Mar-05 400 55 22000 Cost of goods sold Per unit cost Total Cost Units 100 100 Mar-09 80 50 4000 18700 340 55 Mar-18 120 60 7200 Mar-25 200 62 12400 Balance Per unit cost Total Cost 5000 5000 22000 1000 3300 1000 3300 7200 1000 3300 7200 12400 1000 3300 4800 4960 1000 3300 60 4800 4960 Ending 14060 Mar-29 40 120 60 62 2400 7440 Mar-31 Purchases 41600 COGS 32540

Gross Margin Sales Less:COGS Gross Profit FIFO 50900 -31800 19100 LIFO 50900 -32920 17980 Avg. Cost 50900 -32248 18652 Spec. ID 50900 -32540 18360 Cost of goods available for sales and number of units available for use Cost of goods # of units Cost per unit available for sale Beginning Inv. 100 50 5000 Purchases: Mar-05 400 22000 Mar-18 120 7200 Mar-25 200 12400 Total 820 46600 60 62