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 60 units @ $50.20 per unit Mar. 5 Purchase 205 units @ $55.20 per unit Mar. 9 Sales 220 units @ $85.20 per unit Mar. 18 Purchase 65 units @ $60.20 per unit Mar. 25 Purchase 110 units @ $62.20 per unit Mar. 29 Sales 90 units @ $95.20 per unit Totals 440 units 310 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 45 units from beginning inventory and 175 units from the March 5 purchase; the March 29 sale consisted of 25 units from the March 18 purchase and 65 units from the March 25 purchase.

Answer 1

Tthe perpetual inventory schedule using FIFO.
Date	Purchases			Cost of Goods sold			Balance
	No.of units	Cost per unit	Total Cost	No.of units	Cost per unit	Cost of Goods sold	No.of units	Cost per unit	Inventory Balance
March.1							60	$50.20	$3,012.00
March.5	205	$55.20	$11,316				60	$50.20	$3,012.00
							205	$55.20	$11,316.00
				0		$0.00	265		$14,328.00
March.9				60	$50.20	$3,012.00	45	$55.20	$2,484.00
				160	$55.20	$8,832.00
				220		$11,844.00	45		$2,484.00
March.18	65	$60.20	$3,913				45	$55.20	$2,484.00
							65	$60.20	$3,913.00
				0		$0.00	110		$6,397.00
March.25	110	$62.20	$6,842				45	$55.20	$2,484.00
							65	$60.20	$3,913.00
							110	$62.20	$6,842.00
				0		$0.00	220		$13,239.00
March.29				45	$55.20	$2,484.00	20	$60.20	$1,204.00
				45	$60.20	$2,709.00	110	$62.20	$6,842.00
				90		$5,193.00	130		$8,046.00
Total	380		$22,071.00	310		$17,037.00	130		$8,046.00
Cost assigned to ending Inventory using FIFO =				$8,046.00
Tthe perpetual inventory schedule using LIFO.
Date	Purchases			Cost of Goods sold			Balance
	No.of units	Cost per unit	Total Cost	No.of units	Cost per unit	Cost of Goods sold	No.of units	Cost per unit	Inventory Balance
March.1							60	$50.20	$3,012.00
March.5	205	$55.20	$11,316				60	$50.20	$3,012.00
							205	$55.20	$11,316.00
				0		$0.00	265		$14,328.00
March.9				205	$55.20	$11,316.00	45	$50.20	$2,259.00
				15	$50.20	$753.00
				220		$12,069.00	45		$2,259.00
March.18	65	$60.20	$3,913				45	$50.20	$2,259.00
							65	$60.20	$3,913.00
				0		$0.00	110		$6,172.00
March.25	110	$62.20	$6,842				45	$50.20	$2,259.00
							65	$60.20	$3,913.00
							110	$62.20	$6,842.00
				0		$0.00	220		$13,014.00
March.29				90	$62.20	$5,598.00	45	$50.20	$2,259.00
							65	$60.20	$3,913.00
							20	$62.20	$1,244.00
				90		$5,598.00	130		$7,416.00
Total	380		$22,071.00	310		$17,667.00	130		$7,416.00
Cost assigned to ending Inventory using LIFO =				$7,416.00
Cost assigned to ending Inventory using Weighted Average =				$7,792.94
Cost assigned to ending Inventory using specific identification =				$7,616.00