Required information Problem 5-1A Perpetual: Alternative cost flows LO P1 [The f

Question

Required information Problem 5-1A Perpetual: Alternative cost flows LO P1 [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 Units Sold at Retail Units Acquired at Cost 120 units $51.40 per unit 235 units $56.40 per unit Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 280 units $86.40 per unit 95 units $61.40 per unit 170 units$63.40 per unit 150 units $96.40 per unit 430 units Totals 620 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 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 55 units from the March 18 purchase and 95 units from the March 25 purchase

Explanation / Answer

Ending inventory FIFO 12006 LIFO 10956 Weighted average 11576 Specific identification 11216 FIFO cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 120 51.4 6168 Mar-05 Purchase 235 56.4 13254 Mar-09 Sales 120 51.4 6168 160 56.4 9024 Balance 75 56.4 4230 Mar-18 Purchase 95 61.4 5833 Mar-25 Purchase 170 63.4 10778 Mar-29 Sales 75 56.4 4230 75 61.4 4605 20 61.4 1228 170 63.4 10778 Balance 190 12006 620 36033 430 24027 LIFO cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 120 51.4 6168 Mar-05 Purchase 235 56.4 13254 Mar-09 Sales 235 56.4 13254 45 51.4 2313 Balance 75 51.4 3855 Mar-18 Purchase 95 61.4 5833 Mar-25 Purchase 170 63.4 10778 Mar-29 Sales 150 63.4 9510 75 51.4 3855 95 61.4 5833 20 63.4 1268 Balance 190 10956 620 36033 430 25077 Average cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 120 51.4 6168 Mar-05 Purchase 235 56.4 13254 Balance 355 54.710 19422 Mar-09 Sales 280 54.710 15318.76 Balance 75 54.710 4103 Mar-18 Purchase 95 61.4 5833 Balance 170 58.45 9936 Mar-25 Purchase 170 63.4 10778 Balance 340 60.92 20714 Mar-29 Sales 150 60.92 9138.635 Balance 190 60.92 11576 620 36033 430 24457.4 Specific identification cost of goods sold Ending inventory of unit Average cost per unit Cost of Average goods available for sale of unit Average cost per unit cost of goods sold of unit Average cost per unit Ending inventory Beginning inventory 120 51.4 6168 Mar-05 Purchase 235 56.4 13254 Mar-09 Sales 75 51.4 3855 205 56.4 11562 Balance 45 51.4 2313 30 56.4 1692 Mar-18 Purchase 95 61.4 5833 Mar-25 Purchase 170 63.4 10778 Mar-29 Sales 55 61.4 3377 95 63.4 6023 45 51.4 2313 30 56.4 1692 40 61.4 2456 75 63.4 4755 190 11216 Balance 620 36033 430 24817

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