Problem 5-1A (Algo) Periodic: Alternative cost flows LO P1

Skip to question

[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

195

units

@ $85 per unit

Mar.

5

Purchase

495

units

@ $90 per unit

Mar.

9

Sales

515

units

@ $120 per unit

Mar.

18

Purchase

310

units

@ $95 per unit

Mar.

25

Purchase

390

units

@ $97 per unit

Mar.

29

Sales

350

units

@ $130 per unit

Totals

1,390

units

865

units

For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 455 units from the March 5 purchase; the March 29 sale consisted of 135 units from the March 18 purchase and 215 units from the March 25 purchase.