Problem 5-1A Part 3

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.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

220

units

@ $53.40 per unit

Mar.

5

Purchase

285

units

@ $58.40 per unit

Mar.

9

Sales

380

units

@ $88.40 per unit

Mar.

18

Purchase

145

units

@ $63.40 per unit

Mar.

25

Purchase

270

units

@ $65.40 per unit

Mar.

29

Sales

250

units

@ $98.40 per unit

Totals

920

units

630

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 125 units from beginning inventory and 255 units from the March 5 purchase; the March 29 sale consisted of 105 units from the March 18 purchase and 145 units from the March 25 purchase.

Perpetual FIFO: Inventory Balance Goods Purchased #of units Cost of Goods Sold Cost per unit # of units sold Cost per unit Cost of Goods Sold Cost perInventory Balance Date # of units unit March 1 220 S 53.40 11,748.00 March 5 285@$58.40 0 S 53.40 0 $ 58.40 March 9 380 88.4 380 88.4 March 18 March 25 March 29 Totals $ 0.00 Perpetual FIFo Perpetual LIFO