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

130

units

@ $65 per unit

Mar.

5

Purchase

430

units

@ $70 per unit

Mar.

9

Sales

450

units

@ $100 per unit

Mar.

18

Purchase

180

units

@ $75 per unit

Mar.

25

Purchase

260

units

@ $77 per unit

Mar.

29

Sales

220

units

@ $110 per unit

Totals

1,000

units

670

units

For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.

• FIFO
• Periodic LIFO
• Weighted Average
• Specific Id

Compute the cost assigned to ending inventory using FIFO.

	a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory $0 $0.00 $0 $0.00 $0 Purchases: March 5 0 $0.00 0 $0.00 0 March 18 0 $0.00 0 $0.00 0 March 25 0 0 $0.00 0 Total 0 0 0

Compute the cost assigned to ending inventory using LIFO.

	b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory $0 Purchases: March 5 0 March 18 0 March 25 0 Total 0 0

Answer 1

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	130	$                65.00	$                        8,450.00	130	$               65.00	$                 8,450.00	0	$                 65.00	$                         -
Purchases:
05-Mar	430	$                70.00	$                      30,100.00	430	$               70.00	$               30,100.00	0	$                 70.00	$                         -
18-Mar	180	$                75.00	$                      13,500.00	110	$               75.00	$                 8,250.00	70	$                 75.00	$            5,250.00
25-Mar	260	$                77.00	$                      20,020.00	0	$               77.00	$                              -	260	$                 77.00	$          20,020.00
TOTAL	1000		$                      72,070.00	670		$               46,800.00	330		$          25,270.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	130	$                65.00	$                        8,450.00	0	$               65.00	$                              -	130	$                 65.00	$            8,450.00
Purchases:	0	$                       -	$                                     -
05-Mar	430	$                70.00	$                      30,100.00	230	$               70.00	$               16,100.00	200	$                 70.00	$          14,000.00
18-Mar	180	$                75.00	$                      13,500.00	180	$               75.00	$               13,500.00	0	$                 75.00	$                         -
25-Mar	260	$                77.00	$                      20,020.00	260	$               77.00	$               20,020.00	0	$                 77.00	$                         -
TOTAL	1000		$                      72,070.00	670		$               49,620.00	330		$          22,450.00
Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	130	$                65.00	$                        8,450.00	70	$               65.00	$                 4,550.00	60	$                 65.00	$            3,900.00
Purchases:	0	$                       -	$                                     -
05-Mar	430	$                70.00	$                      30,100.00	380	$               70.00	$               26,600.00	50	$                 70.00	$            3,500.00
18-Mar	180	$                75.00	$                      13,500.00	70	$               75.00	$                 5,250.00	110	$                 75.00	$            8,250.00
25-Mar	260	$                77.00	$                      20,020.00	150	$               77.00	$               11,550.00	110	$                 77.00	$            8,470.00
TOTAL	1000		$                      72,070.00	670		$               47,950.00	330		$          24,120.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	130	$                65.00	$                        8,450.00
Purchases:	0	$                       -	$                                     -
05-Mar	430	$                70.00	$                      30,100.00
18-Mar	180	$                75.00	$                      13,500.00
25-Mar	260	$                77.00	$                      20,020.00
TOTAL	1000	$              72.07	$                      72,070.00	670	$          72.0700	$               48,286.90	330	$            72.0700	$          23,783.10