Question

Required information Problem 6-1A 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 Units Sold at Retail Units Acquired at Cost 170 units @ $52.40 per unit 260 units @ $57.40 per unit 330 units @ $87.40 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 @ $62.40 per unit 220 units @ $64.40 per unit 200 units @ $97.40 per unit 530 units 779 units Problem 6-1A Part 3 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 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase. Complete this question by entering your answers in the tabs below. Perpetual FIFO Perpetual LIFO Weighted Average Specific Id Compute the cost assigned to ending inventory using FIFO. Perpetual FIFO:

   

   

Answer 1

Answer:

Perpetual FIFO Goods Purchased #of Date Units Cost per unit Mar-01 Mar-05 260 @ $ 57.40 # of unit sold Cost of goods sold cost of goods Cost per unit sold Inventory balance # of Units Cost per unit Inventory balance 170 @ $ 52.40 = $ 8,908.00 170 @ $ 52.40 = $ 8,908.00 260 @ $ 57.40 = $ 14,924.00 430 $ 23,832.00 100 @ $ 57.40 = $ 5,740.00 Mar-09 170 @ $ 160 @ $ 330 52.40 = $ 8,908.00 57.40 = $ 9,184.00 = $ 18,092.00 100 Mar-18 120 @ $ 62.40 Mar-25 220 @ $ 64.40 100 @ $ 120 @ $ 220 100 @ $ 120 @ $ 220 @ $ 440 20 @ $ 220 @ $ 240 $ 57.40 = $ 62.40 = $ $ 57.40 = $ 62.40 = $ 64.40 = $ $ 62.40 $ 64.40 $ $ $ 5,740.00 5,740.00 7,488.00 13,228.00 5,740.00 7,488.00 14,168.00 27,396.00 1,248.00 14,168.00 15,416.00 15,416.00 Mar-29 100 @ $ 100 @ $ 200 57.40 62.40 = $ 5,740.00 $ 6,240.00 $ 11,980.00 $ 30,072.00 Total 530 240

Perpetual LIFO Goods Purchased # of Date Units Cost per unit Mar-01 Mar-05 260 @ $ 57.40 # of unit sold Cost of goods sold cost of goods Cost per unit sold Inventory balance #of Units Cost per unit) Inventory balance 170 @ $ 52.40 = $ 8,908.00 170 @ $ 52.40 = $ 8,908.00 260 @ $ 57.40 = $ 14,924.00 430 $ 23,832.00 100 @ $ 52.40 = $ 5,240.00 Mar-09 260 @ $ 70 @ $ 330 57.40 = $ 14,924.00 52.40 = $ 3,668.00 = $ 18,592.00 100 $ Mar-18 120 @ $ 62.40 Mar-25 220 @ $ 64.40 100 @ $ 120 @ $ 220 100 @ $ 120 @ $ 220 @ $ 440 100 @ $ 120 @ $ 20 @ $ 52.40 $ 62.40 = $ $ 52.40 $ 62.40 $ 64.40 $ $ 52.40 = $ 62.40 = $ 64.40 = $ $ $ 5,240.00 5,240.00 7,488.00 12,728.00 5,240.00 7,488.00 14,168.00 26,896.00 5,240.00 7,488.00 1,288.00 14,016.00 14,016.00 Mar-29 200 @ $ 64.40 = $ 12,880.00 200 240 $ 12,880.00 $ 31,472.00 Total 530 240

Specific identification Goods Purchased #of Date Units Cost per unit Mar-01 Mar-05 260 @ $ 57.40 # of unit sold Cost of goods sold cost of goods Cost per unit sold Mar-091 100 @ $ 230 @ $ 330 52.40 $ 5,240.00 57.40 = $ 13,202.00 = $ 18,442.00 Mar-18 120 @ $ 62.40 Inventory balance #of Units Cost per unit Inventory balance 170 @ $ 52.40 = $ 8,908.00 170 @ $ 52.40 = $ 8,908.00 260 @ $ 57.40 = $ 14,924.00 430 $ 23,832.00 70 @ $ 52.40 $ 3,668.00 30 @ $ 57.40 $ 1,722.00 100 $ 5,390.00 70 @ $ 52.40 $ 3,668.00 30 @ $ 57.40 = $ 1,722.00 120 @ $ 62.40 $ 7,488.00 220 $ 12,878.00 70 @ $ 52.40 = $ 3,668.00 30 @ $ 57.40 = $ 1,722.00 120 @ $ 62.40 = $ 7,488.00 220 @ $ 64.40 = $ 14,168.00 440 $ 27,046.00 70 @ $ 52.40 = $ 3,668.00 30 @ $ 57.40 = $ 1,722.00 40 @ $ 62.40 $ 2,496.00 100 @ $ 64.40 = $ 6,440.00 240 $ 14,326.00 240 $ 14,326.00 "" Mar-25 220 @ $ 64.40 Mar-29 80 @ $ 120 @ $ 62.40 = $ 4,992.00 64.40 = $ 7,728.00 200 $ 12,720.00 $ 31,162.00 Total 530

Weighted average, perpetual Goods Purchased #of Date Units Cost per unit Mar-01 Mar-05 260 @ $ 57.40 Mar-09 Cost of goods sold Inventory balance # of unit cost of goods sold Cost per unit sold # of Units Cost per unit Inventory balance 170 @ $ 52.40 = $ 8,908.00 430 @ $ 55.42 $ 23,832.00 cost per unit is total cost divided by total units 170+260 23832/430 8908+(260x57.40) 330 @ $ 55.42 18,288.60 100 @ $ 55.42 $ 5,542.00 430-330 220 @ $ 59.23 $ 13,030.00 cost per unit is total cost divided by total units 100+120 13030/220 5542+(120x62.40) 440 @ $ 61.81 27,198.00 cost per unit is total cost divided by total units 220+220 27198/440 13030+(220x64.40) 200 @ $ 61.81 12,362.00 240 @ $ 61.81 $ 14,834.40 440-200 530 $ 30,650.60 240 $ 14,834.40 Mar-18 120 @ $ 62.40 Mar-25 220 @ $ 64.40 Mar-29 Total