Kequirea intormation The following information applies to the questions displaye

Question

Kequirea intormation The following information applies to the questions displayed below.) Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 100 units@ $50.00 per unit 400 units$55.00 per unit 420 unitse $85.00 per unit 120 units$60.00 per unit 200 units $62.00 per unit 160 unitse $95.00 per unit 580 units Totals 3. Compute the cost assigned to ending inventory using (a) FIFO, (b)LIFO, (c) welghted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Explanation / Answer

Ending inventory (a) FIFO $14800 (b) LIFO $13680 (c) Weighted average $14352 (d) Specific identification $14060 Perpetual FIFO Goods Purchased Cost of Goods Sold Inventory Balance Date Units Unit cost Units Unit cost Total $ Units Unit cost Total $ Mar. 1 Bal. 100 50.00 5000 Mar. 5 400 55.00 100 50.00 5000 400 55.00 22000 500 27000 Mar. 9 100 50.00 5000 320 55.00 17600 80 55.00 4400 420 22600 80 4400 Mar. 18 120 60.00 80 55.00 4400 120 60.00 7200 200 11600 Mar. 25 200 62.00 80 55.00 4400 120 60.00 7200 200 62.00 12400 400 24000 Mar. 29 80 55 4400 40 60.00 2400 80 60 4800 200 62.00 12400 160 9200 240 14800 Totals 720 580 31800 240 14800 Perpetual LIFO Goods Purchased Cost of Goods Sold Inventory Balance Date Units Unit cost Units Unit cost Total $ Units Unit cost Total $ Mar. 1 Bal. 100 50.00 5000 Mar. 5 400 55.00 100 50.00 5000 400 55.00 22000 500 27000 Mar. 9 400 55.00 22000 20 50.00 1000 80 50.00 4000 420 23000 80 4000 Mar. 18 120 60.00 80 50.00 4000 120 60.00 7200 200 11200 Mar. 25 200 62.00 80 50.00 4000 120 60.00 7200 200 62.00 12400 400 23600 Mar. 29 160 62.00 9920 80 50.00 4000 120 60.00 7200 40 62.00 2480 160 9920 240 13680 720 580 32920 240 13680 Weighted Average Perpetual Goods Purchased Cost of Goods Sold Inventory Balance Date Units Unit cost Units Unit cost Total $ Units Unit cost Total $ Mar. 1 Bal. 100 50.00 5000 Mar. 5 400 55.00 100 50.00 5000 400 55.00 22000 Average 500 54.00 27000 Mar. 9 420 54.00 22680.00 80 54.00 4320.00 Mar. 18 120 60.00 80 54.00 4320.00 120 60.00 7200.00 Average 200 57.60 11520.00 Mar. 25 200 62.00 80 54.00 4320.00 120 60.00 7200 200 62.00 12400 Average 400 59.80 23920.00 Mar. 29 160 59.8 9568.00 240 59.80 14352.00 Totals 720 580 32248.00 240 14352.00 Specific Identification Goods Purchased Cost of Goods Sold Inventory Balance Date Units Unit cost Units Unit cost Total $ Units Unit cost Total $ Mar. 1 Bal. 100 50.00 5000 Mar. 5 400 55.00 100 50.00 5000 400 55.00 22000 500 27000 Mar. 9 80 50.00 4000 20 50.00 1000 340 55.00 18700 60 55.00 3300 420 22700 80 4300 Mar. 18 120 60.00 20 50.00 1000 60 55.00 3300 120 60.00 7200 200 11500 Mar. 25 200 62.00 20 50.00 1000 60 55.00 3300 120 60.00 7200 200 62.00 12400 400 23900 Mar. 29 40 60.00 2400 20 50.00 1000 120 62.00 7440 60 55.00 3300 80 60.00 4800 80 62.00 4960 160 9840 240 14060 Totals 720 580 32540 240 14060

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