Warner woods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
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Warner woods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||
---|---|---|---|---|---|---|---|
March 1 | Beginning inventory | 160 | units | @ $52.20 per unit | |||
March 5 | Purchase | 255 | units | @ $57.20 per unit | |||
March 9 | Sales | 320 | units | @ $87.20 per unit | |||
March 18 | Purchase | 115 | units | @ $62.20 per unit | |||
March 25 | Purchase | 210 | units | @ $64.20 per unit | |||
March 29 | Sales | 190 | units | @ $97.20 per unit | |||
Totals | 740 | units | 510 | units |
3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 95 units from beginning inventory, 225 units from the March 5 purchase, 75 units from the March 18 purchase, and 115 units from the March 25 purchase.
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