Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 [The f
ID: 2589398 • Letter: R
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Required information
Problem 6-1A 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.
Problem 6-1A 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 110 units from beginning inventory and 240 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 130 units from the March 25 purchase.
Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.
For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 415 units from the March 5 purchase; the March 29 sale consisted of 115 units from the March 18 purchase and 195 units from the March 25 purchase.
Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 190 units @ $52.80 per unit Mar. 5 Purchase 270 units @ $57.80 per unit Mar. 9 Sales 350 units @ $87.80 per unit Mar. 18 Purchase 130 units @ $62.80 per unit Mar. 25 Purchase 240 units @ $64.80 per unit Mar. 29 Sales 220 units @ $97.80 per unit Totals 830 units 570 units FIFO Gross Margin Sales Less: Cost of goods sold Gross profit LIFO Avg. Cost Spec. IDExplanation / Answer
1) Perpetual FIFO Purchase Cost of goods sold Inventory balance Date Units Cost per unit Total Units Cost per unit Total Units Cost per unit Total March 1 190 52.8 10032 190 52.8 10032 5 270 57.8 15606 190 52.8 10032 270 57.8 15606 9 190 52.8 10032 110 57.8 6358 160 57.8 9248 18 130 62.8 8164 110 57.8 6358 130 62.8 8164 25 240 64.8 15552 110 57.8 6358 130 62.8 8164 240 64.8 15552 29 110 57.8 6358 20 62.8 1256 110 62.8 6908 240 64.8 15552 Total 830 49354 570 32546 260 16808 2) Perpetual LIFO Purchase Cost of goods sold Inventory balance Date Units Cost per unit Total Units Cost per unit Total Units Cost per unit Total March 1 190 52.8 10032 190 52.8 10032 5 270 57.8 15606 190 52.8 10032 270 57.8 15606 9 270 57.8 15606 110 52.8 5808 80 52.8 4224 18 130 62.8 8164 110 52.8 5808 130 62.8 8164 25 240 64.8 15552 110 52.8 5808 130 62.8 8164 240 64.8 15552 29 220 64.8 14256 110 52.8 5808 130 62.8 8164 20 64.8 1296 Total 830 49354 570 34086 260 15268 3) Perpetual Weighted avergae Purchase Cost of goods sold Inventory balance Date Units Cost per unit Total Units Cost per unit Total Units Cost per unit Total March 1 190 52.8 10032 190 52.80 10032 5 270 57.8 15606 460 55.73 25638 (10032+15606/190+270) 9 350 55.73 19507 110 55.73 6131 18 130 62.8 8164 240 59.56 14295 (6131+8164/110+130) 25 240 64.8 15552 480 62.18 29847 (14295+15552/240+240) 29 220 62.18 13680 260 62.18 16167 Total 830 49354 570 33187 260 16167 4) Specific identification Purchase Cost of goods sold Inventory balance Date Units Cost per unit Total Units Cost per unit Total Units Cost per unit Total March 1 190 52.8 10032 190 52.8 10032 5 270 57.8 15606 190 52.8 10032 270 57.8 15606 9 110 52.8 5808 80 52.8 4224 240 57.8 13872 30 57.8 1734 18 130 62.8 8164 80 52.8 4224 30 57.8 1734 130 62.8 8164 25 240 64.8 15552 80 52.8 4224 30 57.8 1734 130 62.8 8164 240 64.8 15552 29 90 62.8 5652 80 52.8 4224 130 64.8 8424 30 57.8 1734 40 62.8 2512 110 64.8 7128 Total 830 49354 570 33756 260 15598 Units Cost per unit Total Mar-09 350 87.8 30730 Mar-29 220 97.8 21516 Total sales 52246 Gross Margin FIFO LIFO Avg. cost Spec idn Sales 52246 52246 52246 52246 Less: COGS 32546 34086 33187 33756 Gross Profit 19700 18160 19059.03 18490
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