Question

 

Warnerwoods Company uses a perpetual 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

120

units

@ $51.40 per unit

Mar.

5

Purchase

235

units

@ $56.40 per unit

Mar.

9

Sales

280

units

@ $86.40 per unit

Mar.

18

Purchase

95

units

@ $61.40 per unit

Mar.

25

Purchase

170

units

@ $63.40 per unit

Mar.

29

Sales

150

units

@ $96.40 per unit

Totals

620

units

430

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 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 55 units from the March 18 purchase and 95 units from the March 25 purchase.

Answer 1

Req 1 - Perpetual FIFO	Goods Purchased	Cost of Goods sold	Inventory Balance
Date	# of Units	Cost per Unit	# of Units sold	Cost per unit	Cost of Goods sold	# of Units	Cost per unit	Inventory Balance
Mar. 1						120	51.40	6,168.00
Mar. 5	235	56.40				120	51.40	6,168.00
						235	56.40	13,254.00
								19,422.00
Mar. 9			120	51.40	6,168.00	75	56.40	4,230.00
			160	56.40	9,024.00
			280.00		15,192.00			4,230.00
Mar. 18	95	61				75.00	56.40	4230.00
						95.00	61.40	5,833.00
								10063.00
Mar. 25	170	63				75.00	56.40	4230.00
						95.00	61.40	5833.00
						170.00	63.40	10778.00
								20841.00
Mar. 29			75.00	56.40	4,230.00	0.00	56.40	-
			75.00	61.40	4,605.00	20.00	61.40	1,228.00
						170.00	63.40	10,778.00
			150.00		8,835.00	190.00		12,006.00
Grand Total			430.00		24,027.00	190.00		12,006.00