Required information

Problem 6-1A 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

190

units

@ $52.80 per unit

Mar.

5

Purchase

270

units

@ $57.80 per unit

Mar.

9

Sales

350

units

@ $87.80 per unit

Mar.

18

Purchase

130

units

@ $62.80 per unit

Mar.

25

Purchase

240

units

@ $64.80 per unit

Mar.

29

Sales

220

units

@ $97.80 per unit

Totals

830

units

570

units

Problem 6-1A Part 3

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 110 units from beginning inventory and 240 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 130 units from the March 25 purchase.

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

175

units

@ $65 per unit

Mar.

5

Purchase

475

units

@ $70 per unit

Mar.

9

Sales

495

units

@ $100 per unit

Mar.

18

Purchase

270

units

@ $75 per unit

Mar.

25

Purchase

350

units

@ $77 per unit

Mar.

29

Sales

310

units

@ $110 per unit

Totals

1,270

units

805

units

For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 415 units from the March 5 purchase; the March 29 sale consisted of 115 units from the March 18 purchase and 195 units from the March 25 purchase.

FIFO Gross Margin Sales Less: Cost of goods sold Gross profit LIFO Avg. Cost Spec. ID