Question

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 145 units @ $80 per unit Mar. 5 Purchase 445 units @ $85 per unit Mar. 9 Sales 465 units @ $115 per unit Mar. 18 Purchase 210 units @ $90 per unit Mar. 25 Purchase 290 units @ $92 per unit Mar. 29 Sales 250 units @ $125 per unit Totals 1,090 units 715 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 165 units from the March 25 purchase.

Answer 1

Date	Sales revenue
	Unit	Unit Selling price	Sales Revenue
Mar 9	465	$        115	$        53,475
Mar 29	250	$        125	$        31,250
Total	715		$        84,725

Method	Specific Identification				Periodic Inventory System
Date	Goods Available for sale			Cost of goods sold			Ending inventory
	Unit	unit cost	value	Unit	unit cost	value	Unit	unit cost	value
Beginning Mar 1	145	80	11,600	90	80	7,200	55	80	4,400
Purchase Mar 5	445	85	37,825	375	85	31,875	70	85	5,950
Purchase Mar 18	210	90	18,900	85	90	7,650	125	90	11,250
Purchase Mar 25	290	92	26,680	165	92	15,180	125	92	11,500
Total	1090		$        95,005	715		$        61,905	375		$        33,100
Method	First in First out				Periodic Inventory System
Date	Goods Available for sale			Cost of goods sold			Ending inventory
	Unit	unit cost	value	Unit	unit cost	value	Unit	unit cost	value
Beginning Mar 1	145	80	11,600	145	80	11,600
Purchase Mar 5	445	85	37,825	445	85	37,825
Purchase Mar 18	210	90	18,900	125	90	11,250	85	90	7,650
Purchase Mar 25	290	92	26,680				290	92	26,680
Total	1090		$        95,005	715		$        60,675	375		$        34,330
Method	Last in First out				Periodic Inventory System
Date	Goods Available for sale			Cost of goods sold			Ending inventory
	Unit	unit cost	value	Unit	unit cost	value	Unit	unit cost	value
Beginning Mar 1	145	80	11,600				145	80	11,600
Purchase Mar 5	445	85	37,825	215	85	18,275	230	85	19,550
Purchase Mar 18	210	90	18,900	210	90	18,900
Purchase Mar 25	290	92	26,680	290	92	26,680
Total	1090		$        95,005	715		$        63,855	375		$        31,150

Method	Weighted Average (Periodic Inventory System)
Date	goods Available for sale
	Unit	unit cost	value
Beginning Mar 1	145	80	11,600
Purchase Mar 5	445	85	37,825
Purchase Mar 18	210	90	18,900
Purchase Mar 25	290	92	26,680
Total	1090		95,005
Cost of Goods Available for sale			95,005
Divided by: Units Available for sale			1,090
Weighted Average cost per unit			87.16
Cost of goods sold	715	87.16	$        62,320
Ending inventory	375	87.16	$        32,685

Summary of answer
Periodic Inventory System	First in First out	Last in First out	Weighted Average	Specific Identification
Cost of goods sold	$        60,675	$        63,855	$        62,320	$        61,905
Ending inventory	$        34,330	$        31,150	$        32,685	$        33,100

Income statement
Periodic Inventory System	First in First out	Last in First out	Weighted Average	Specific Identification
Sales revenue	$        84,725	$        84,725	$        84,725	$        84,725
Less: Cost of goods sold	$        60,675	$        63,855	$        62,320	$        61,905
Gross Profit	$        24,050	$        20,870	$        22,405	$        22,820