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! 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 Units Sold at Retail Units Acquired at Cost 175 units @ $65 per unit 475 units @ $70 per unit 495 units @ $100 per unit Date Activities Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Totals 270 units @ $75 per unit 350 units @ $77 per unit 310 units @ $110 per unit 805 units 1,270 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. 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 Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Cost per Goods units unit Available for Sale 175 $ 65.00 $ 11,375 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per Ending Inventory unit 175 $ 65.00 $ 11,375 0 $ 0.00 $ 0 475 0 0 Beginning inventory Purchases: March 5 March 18 March 25 Total $ 70.00 $ 75.00 $ 70.00 $ 75.00 $ 77.00 33,250 11,625 270 350 1,270 33,250 20,250 26,950 $ 91,825 475 155 0 805 $ 0.00 $ 75.00 $ 77.00 115 350 465 0 8,625 26,950 $ 35,575 $56,250 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Cost per Goods units unit Available for Sale 175 $ 65.00 $ 11,375 # of units sold Cost per unit Cost of Goods Sold Cost per # of units in ending inventory 175 unit Ending Inventory 0 $ 65.00 $ 11,375 185 70.00 Beginning inventory Purchases: March 5 March 18 March 25 Total 475 270 350 1,270 $ 70.00 $ 75.00 $ 77.00 20,300 0 33,250 20,250 26,950 $ 91,825 $ 70.00 $ 75.00 $ 77.00 270 350 805 12,950 20,250 26,950 $60,150 290 0 0 465 0 $ 31,675 c) Average Cost Cost of Goods Sold Ending Inventory # of Cost of Goods Available for Sale Cost of Average Goods units Cost per Available unit for Sale 175 $ 11,375 # of units sold Average Cost per Unit Cost of Goods Sold # of units in ending inventory Average Cost per unit Ending Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 475 270 350 1,270 33,250 20,250 26,950 X $ 91,825 805 $ 72.30 $58,202 465 $ 72.30 $ 33,620 d) Specific Identification Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of Cost per Goods units unit Available for Sale 175 $ 65.00 $ 11,375 # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory 80 $ 65.00 $ 5,200 95 $ 65.00 $ 6,175 Beginning inventory Purchases: March 5 March 18 March 25 Total 475 270 350 1,270 $ 70.00 $ 75.00 $ 77.00 33,250 20,250 26,950 $ 91,825 415 115 195 805 $ 70.00 $ 75.00 $ 77.00 29,050 8,625 15,015 $57,890 60 155 155 465 $ 70.00 $ 75.00 $ 77.00 4,200 11,625 11,935 $ 33,935
