Question

Problem 5-1A Perpetual: Alternative cost flows LO P1 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 Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Activities Units Acquired at Cost 60 units $50.20 per unit 205 units $55.20 per unit Units Sold at Retail 220 units $85.20 per unit 65 units@ $60.20 per unit 110 units $62.20 per unit 90 units $95.20 per unit Totals 440 units 310 units

Answer 1

	GOODS AVAILABLE
DATE	UNITS	RATE	AMOUNT $
Balance Oct1	60	50.2	3012
Purchasse			0
5-Mar	205	55.2	11316
18-Mar	65	60.2	3913
25-Mar	110	62.2	6842
TOTAL	440		25083
Units of ending inventory:
Total units			440
Less: Sales units			310
Ending inventory units			130
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Mar							60	50.2	3012
5-Mar	205	55.2	11316				60	50.2	3012
							205	55.2	11316
9-Mar				60	50.2	3012
				160	55.2	8832	45	55.2	2484
18-Mar	65	60.2	3913				45	55.2	2484
							65	60.2	3913
25-Mar	110	62.2	6842				45	55.2	2484
							65	60.2	3913
							110	62.2	6842
29-Mar				45	55.2	2484	20	60.2	1204
				45	60.2	2709	110	62.2	6842
TOTAL	380		22071	310		17037	130		8046
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Mar							60	50.2	3012
5-Mar	205	55.2	11316				60	50.2	3012
							205	55.2	11316
9-Mar				205	55.2	11316
				15	50.2	753	45	50.2	2259
18-Mar	65	60.2	3913				45	50.2	2259
							65	60.2	3913
25-Mar	110	62.2	6842				45	50.2	2259
							65	60.2	3913
							110	62.2	6842
29-Mar				90	62.2	5598	45	50.2	2259
							65	60.2	3913
							20	62.2	1244
TOTAL	380		22071	310		17667	130		7416
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
1-Mar							60	50.2	3012
5-Mar	205	55.2	11316				60	50.2	3012
							205	55.2	11316
Average							265	54.07	14328
9-Mar				220	54.07	11895	45	54.07	2433
18-Mar	65	60.2	3913				45	54.07	2433
							65	60.2	3913
25-Mar	110	62.2	6842				45	54.07	2433
							65	60.2	3913
							110	62.2	6842
Average							220	59.95	13188
29-Mar				90	59.95	5396	130	59.95	7792
TOTAL	380		22071	310		17291	130		7792
STATEMENT SHOWING INVENTORY RECORD UNDER SPECIFIC IDENTIFICATIONMETHOD
	GOODS AVAILABLE			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance Oct1	60	50.2	3012	45	50.2	2259	15	50.2	753
Purchasse			0
5-Mar	205	55.2	11316	175	55.2	9660	30	55.2	1656
18-Mar	65	60.2	3913	25	60.2	1505	40	60.2	2408
25-Mar	110	62.2	6842	65	62.2	4043	45	62.2	2799
TOTAL	440		25083	310		17467	130		7616
			FIFO	LIFO	Average	Specific
Sales			27312	27312	27312	27312
Less: Cost of goods sold			17037	17667	17291	17467
Gross profit			10275	9645	10021	9845