Required information

Problem 6-2AA Periodic: Alternative cost flows LO P3

[The following information applies to the questions displayed below.]

Warnerwoods Company uses a periodic 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

135

units

@ $70 per unit

Mar.

5

Purchase

435

units

@ $75 per unit

Mar.

9

Sales

455

units

@ $105 per unit

Mar.

18

Purchase

190

units

@ $80 per unit

Mar.

25

Purchase

270

units

@ $82 per unit

Mar.

29

Sales

230

units

@ $115 per unit

Totals

1,030

units

685

units

For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 155 units from the March 25 purchase.

Problem 6-2AA Part 1 Required 1. Compute cost of goods available for sale and the number of units available for sale. Cost of Goods Available for Sale Cost of Goods Available for #of Units Cost per Unit Sale Beginning inventory Purchases: 0 March 5 0 March 18 0 March 25 Total 0 Problem 6-2AA Part 2 2. Compute the number of units in ending inventory Ending inventory units Problem 6-2AA Part 3 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.) a) Periodic FIFO COst of Goods Available Cost of Goods Sold Ending Inventory for Sale Cost of # of Goods #of Cost Cost of Cost Goods units in per # of Cost Ending Invento Available units per unit Sold ending unit inventory units per unit for sold Sale Beginning inventory Purchases March 5 March 18 March 25 Total b) Periodic LIFO COst of Goods Available Ending Inventory Cost of Goods Sold for Sale Cost of Goods #of of Cost Cost of Cost Goods units in Sold ending inventory unit Ending Invento # of Cost units per unit Available units for per unit per sold Sale Beginning inventory Purchases: March 5 March 18 March 25 Total Cost of Goods Available for Sale c) Average Cost Cost of Goods Sold Ending Inventory Cost of Average Goods Cost Available units for # of Average Cost of units in Average Cost Ending Invento #of # of units Cost Goods per Unit per inventory unit Sold ending sold per unit Sale Beginning inventory Purchases: March 5 March 18 March 25 Total d) Specific Identification Cost of Goods Available Ending Inventory Cost of Goods Sold for Sale Cost of Goods # of of Cost Cost of Cost Ending Invento #of Cost units per unit Available units for Goods units in per unit per ending sold Sold unit inventory Sale Beginning inventory Purchases: March 5 March 18 March 25 Total