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

140

units

@ $51.80 per unit

Mar.

5

Purchase

245

units

@ $56.80 per unit

Mar.

9

Sales

300

units

@ $86.80 per unit

Mar.

18

Purchase

105

units

@ $61.80 per unit

Mar.

25

Purchase

190

units

@ $63.80 per unit

Mar.

29

Sales

170

units

@ $96.80 per unit

Totals

680

units

470

units

Problem 5-1A 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 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase.

Complete this questions by entering your answers in the below tabs.

-Perpetual FIFO

-Perpetal LIFO

-Weighted Average

-Specific ID

Answer 1

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							140	51.8	7252
5-Mar	245	56.8	13916				140	51.8	7252
							245	56.8	13916
9-Mar				140	51.8	7252
				160	56.8	9088	85	56.8	4828
18-Mar	105	61.8	6489				85	56.8	4828
							105	61.8	6489
25-Mar	190	63.8	12122				85	56.8	4828
							105	61.8	6489
							190	63.8	12122
29-Mar				85	56.8	4828	20	61.8	1236
				85	56.8	5253	190	63.8	12122
TOTAL	540		32527	470		26421	210		13358
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							140	51.8	7252
5-Mar	245	56.8	13916				140	51.8	7252
							245	56.8	13916
9-Mar				245	56.8	13916
				55	51.8	2849	85	51.8	4403
18-Mar	105	61.8	6489				85	51.8	4403
							105	61.8	6489
25-Mar	190	63.8	12122				85	51.8	4403
							105	61.8	6489
							190	63.8	12122
29-Mar				170	63.8	10846	85	51.8	4403
							105	61.8	6489
							20	63.8	1276
TOTAL	540		32527	470		27611	210		12168
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							140	51.8	7252
5-Mar	245	56.8	13916				140	51.8	7252
							245	56.8	13916
Average							385	54.98	21168
				300	54.98	16494	85	54.98	4674
18-Mar	105	61.8	6489				85	54.98	4674
							105	61.8	6489
25-Mar	190	63.8	12122				85	54.98	4674
							105	61.8	6489
							190	63.8	12122
Average							380	61.28	23285
29-Mar				170	61.28	10418	210	61.28	12867
TOTAL	540		32527	470		26912	210		12867
STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD
	RECIEPTS			COST OF GOODS SOLD			BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
Balance	140	51.8	7252	85	51.8	4403	55	51.8	2849
Purchasse
5-Mar	245	56.8	13916	215	56.8	12212	30	56.8	1704
18-Mar	105	61.8	6489	65	61.8	4017	40	61.8	2472
25-Mar	190	63.8	12122	105	63.8	6699	85	63.8	5423
TOTAL	680		39779	470		27331	210		12448