Warnerwoods Company uses a perpetual inventory system. It entered into the follo

Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March its Acquired at CostUnits Sold at Retail 100 units $50.00 per unit 400 units $55.00 per unit Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Man. 29 Sales 420 units$85.00 per unit 120 units $60.00 per unit 200 units $62.00 per unit 160 units $95.00 per unit 580 units Totals 820 units Required 1. Compute cost of goods available for sale and the number of units available for sale.

Explanation / Answer

1.

3. Ending inventory using FIFO

Ending inventory = 2400 + 12400 = $14,800

b) Ending inventory using LIFO

Ending inventoey = 2480 + 4000 + 7200

= $ 13,680

c) Ending inventory using weighted avergae cost

weighted average cost per unit = cost of goods available for sale / nuber of units avaialble for sale

= 46600 / 820

= $56.83

Ending inventory = units in ending inventory * weighted average cost per unit

= 240 * 56.83

= $13,639.02

d) Ending invenotry using sepcific identification

Units Cost per unit Total cost Beginning inventory 100 $50 $5,000 Mar 5 purhcases 400 $55 $22,000 Mar 18 purchases 120 $60 $7,200 Mar 25 purchases 200 $62 $12,400 Goods available for sale 820 $46,600

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