Question
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Warnerwoods Company uses a perpetual inventory
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.
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 | 210 | units | @ $53.20 per unit | |||||||
Mar. | 5 | Purchase | 280 | units | @ $58.20 per unit | |||||||
Mar. | 9 | Sales | 370 | units | @ $88.20 per unit | |||||||
Mar. | 18 | Purchase | 140 | units | @ $63.20 per unit | |||||||
Mar. | 25 | Purchase | 260 | units | @ $65.20 per unit | |||||||
Mar. | 29 | Sales | 240 | units | @ $98.20 per unit | |||||||
Totals | 890 | units | 610 | 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 120 units from beginning inventory and 250 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 140 units from the March 25 purchase.
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