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 | | 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 | |
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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 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.
Perpetual FIFO: Inventory Balance Goods Purchased Cost of Goods Sold Cost Cost Cost # of units sold Cost of Goods Sold Inventory Balance # of Date of units per unit per unit per unit units S March 1 210 53.20 11,172.00 S 210 @ $ 11,172.00 280 March 5 58.20 53.20 $ 280 @ 16,296.00 - 58.20 27,468.00 210 $ 11,172.00 March 9 53.20 53.20 S 120 @ 160 9,312.00 6,984.00 - 58.20 58.20 $ 20,484.00 $ 6,984.00 S 140 @ March 18 63.20 53.20 S 120 @ 6,984.00 58.20 140 @ 8,848.00 63.20 15,832.00 $ 260 @ $ March 25 @ 65.20 53.20 120 @ 6,984.00 58.20 S 140 @ 8,848.00 63.20 S 260 @ 16,952.00 65.20 $ 32.784.00 S S $ 1,064.00 20X March 29 S 0.00 53.20 53.20 $ S 260 X@ 120 6,984.00 15,132.00 58.20 58.20 $ 63.20 120 7,584.00 63.20 S 120 X 7,824.00 - 65.20 65.20 $ 22,392.00 16.196.00 $ 16.196.00 $ 42,876.00 Totals Perpetual LIFO Perpetual FIFO | | | Perpetual LIFO: Inventory Balance Goods Purchased Cost of Goods Sold Cost Cost Cost # of units sold Inventory Balance #of Cost of Goods Date #of units per unit per unit per Sold units unit March 1 210 53.20 11,172.00 $ 11,172.00 $ 58,20 280 210 March 5 53.20 $ 58.20 280 16,296.00 $ 27,468.00 $ 280 X@ $14,896.00 120 $ 6,384.00 March 9 - 53.20 53.20 S S 140 X@ 90 X@ $ 8,148.00 5,238.00 58.20 58.20 S $20,134.00 14,532.00 120 @ 140 March 18 $ 6,384.00 63.20 53.20 140 X@ 8,148.00 58.20 63.20 14,532.00 $ 120 @ 53.20 $ 140X@ 58.20 S 260 $ 6,384.00 March 25 65.20 8,148.00 $ 63.20 260 X 16,432.00 65.20 S 30,964.00 $ 240 X $12,768.00 120 $ 6,384.00 @ March 29 53.20 53.20 S 140 X@ 0.00 8,148.00 58.20 58.20 S 20X@ 0.00 1,264.00 63.20 63.20 S $ 65.20 0.00 65.20 $12,768.00 15,796.00 $ $32,902.00 Totals 15,796.00 Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Cost Cost Cost # of units sold # of units Cost of Goods Inventory Balance Date #of units per unit per unit per unit Sold $ 53.20 March 1 210 11,172.00 280 @ 210 @ $ 11,172.00 March 5 53.20 $ 58.20 280 16,296.00 58.20 $ 56.06 490 $27,468.00 Average 370 120 @ $ 6,727.20 March 9 56.06 56.06 20,742.20 $ 140 $ 6,727.20 March 18 120 63.20 56.06 140 8,848.00 63.20 $ 15,574.00 260 Average 59.90 $ 260 260 March 25 $15,574.00 - 65.20 59.90 260 @ 16,952.00 65.20 S 32,526.00 520 62.55 $ 62.55 280 March 29 17,514.00 $ Totals 20,742.20 Perpetual LIFO Specific Id e Specific Identification: Goods Purchased Cost of Goods Sold Inventory Balance Cost Cost Cost # of #of units sold Cost of Goods Inventory Balance Date #of units per unit per unit per unit units Sold March 1 $ 11,172.00 210 @ 53.20 $ 58.20 280 210 $ 11,172.00 March 5 53.20 280 @ 16,296.00 58.20 $ 27,468.00 S 120 @ $ 4,788.00 90 @ March 9 $6,384.00 53.20 53.20 $ $ 250 30 14,550.00 $ 1,746.00 58.20 58.20 S $ 6,534.00 20,934.00 $ 140 @ 90 @ $ 4,788.00 March 18 63.20 53.20 $ 30 @ 1,746.00 58.20 140 @ 8,848.00 = 63.20 $ 15,382.00 S 53.20 $ 58.20 $ 4,788.00 260 90 @ March 25 65.20 30 1,746.00 140 @ 8,848.00 63.20 S 260 @ 65.20 16,952.00 $ 32,334.00 $ 4,788.00 90 March 29 0.00 53.20 53.20 S $ 30 @ 0.00 1,746.00 - 58.20 58.20 40 @ 100 6,320.00 2,528.00 63.20 S 65.20 63.20 $ 120 @ 140 9,128.00 7,824.00 65.20 S $ 16,886.00 15,448.00 $ 16,886.00 Totals 36,382.00 Problem 6-1A Part 4 4. Compute gross profit earned by the company for each of the four costing methods. 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. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.) Answer is complete but not entirely correct. Gross Margin FIFO LIFO Avg. Cost Spec. ID 56,202 $ Sales S 56,202 56,202 S 56,202 Less: Cost of goods sold (35,052.00) (36,732.00) (20,741.00) X (36,382.00) 21,150 S 35,461X 19,820 19,470 $ Gross profit
