Required information The following information applies to the questions displaye

Question

Required information 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 Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Units Acquired at Cost 100 units $51.00 per unit 225 units e $56.00 per unit 260 units $86.00 per unit 85 units $61.00 per unit 150 units $63.00 per unit 130 unitse $96.00 per unit 390 units Totals 560 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 65 units from beginning inventory and 195 units from the March 5 purchase; the March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase.

Explanation / Answer

FIFO DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 100 51 5100 100 51 5100 5-Mar 225 56 12600 100 51 5100 225 56 12600 9-Mar 100 51 5100 160 56 8960 65 56 3640 18-Mar 85 61 5185 65 56 3640 85 61 5185 25-Mar 150 63 9450 65 56 3640 85 61 5185 150 63 9450 29-Mar 65 56 3640 20 61 1220 65 61 3965 150 63 9450 TOTALS 560 32335 390 21,665 170 10,670 LIFO DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 100 51 5100 100 51 5100 5-Mar 225 56 12600 100 51 5100 225 56 12600 9-Mar 225 56 12600 35 51 1785 65 51 3315 18-Mar 85 61 5185 65 51 3315 85 61 5185 25-Mar 150 63 9450 65 51 3315 85 61 5185 150 63 9450 29-Mar 130 63 8190 65 51 3315 85 61 5185 20 63 1260 TOTALS 560 32335 390 22,575 170 9,760 WEIGHTED AVERAGE DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 100 51 5100 100 51 5100 5-Mar 225 56 12600 100 51 5100 225 56 12600 Average 325 54.46 17700 9-Mar 260 54.46 14160 65 54.46 3540 18-Mar 85 61 5185 65 54.46 3540 85 61 5185 Average 150 58.17 8725 25-Mar 150 63 9450 65 54.46 3540 85 61 5185 150 63 9450 Average 300 60.58 18175 29-Mar 130 60.58 7875 170 60.58 10300 TOTALS 560 32335 390 22,035 170 10,300 SPECIFIC IDENTIFICATION DATE Cost of goods available for sale Cost of Goods sold Closing inventory Units Rate Amount Units Rate Amount Units Rate Amount Beginning Inventory 100 51 5100 100 51 5100 5-Mar 225 56 12600 100 51 5100 225 56 12600 9-Mar 65 51 3315 35 51 1785 195 56 10920 30 56 1680 18-Mar 85 61 5185 35 51 1785 30 56 1680 85 61 5185 25-Mar 150 63 9450 35 51 1785 30 56 1680 85 61 5185 150 63 9450 29-Mar 45 61 2745 35 51 1785 85 63 5355 30 56 1680 40 61 2440 65 63 4095 TOTALS 560 32335 390 22,335 170 10,000

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