Required information

[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

100

units

@ $50.00 per unit

Mar.

5

Purchase

400

units

@ $55.00 per unit

Mar.

9

Sales

420

units

@ $85.00 per unit

Mar.

18

Purchase

120

units

@ $60.00 per unit

Mar.

25

Purchase

200

units

@ $62.00 per unit

Mar.

29

Sales

160

units

@ $95.00 per unit

Totals

820

units

580

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 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

.

Weighted Average Perpetual: Goods Purchased Cost of Goods Sold Inventory Balance Cost per Cost per Date # of units # of units sold Cost of Goods Sold # of units Cost per unit unit unit Inventory Balance March 1 100 $ 50.00 = $ 5,000.00 March 5 Average March 9 March 18 Average March 25 March 29 Totals $ 0.00 Compute the cost assigned to ending inventory using specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase. Specific Identification: Goods Purchased # of Cost per Date units unit March 1 March 5 # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold Inventory Balance Cost per Inventory # of units unit Balance 100 @ $50.00 S 5,000.00 March 9 March 18 March 25 March 29 Totals $ 0.00 Perpetual LIFO: Cost of Goods Sold Inventory Balance Goods Purchased # of Cost per units unit Date Cost per # of units sold Cost per cost of Goods Sold unit # of units unit Inventory Balance March 1 100 @ $ 50.00 = $ 5,000.00 March 5 March 9 March 18 March 25 March 29 Totals $ 0.00 Compute the cost assigned to ending inventory using FIFO. Perpetual FIFO: Goods Purchased # of Cost per # of units units sold Cost of Goods Sold Cost per cost of Goods Sold unit Date Inventory Balance # of units Cost per Inventory unit Balance 100 @ $ 50.00 $ 5,000.00 unit March 1 = March 5 400 @ $ 55.00 100 @ 400 @ $ 50.00 = $ 5,000.00 S 55.00 22,000.00 $ 27,000.00 March 9 $ @ @ $50.00 @ $ 55.00 0.00 0.00 $ 50.00 $ 55.00 80 @ = 4,400.00 $ 4,400.00 March 18 120 @ $ 60.00 @ $50.00 80 @ $ 55.00 @ $ 60.00 = 4,400.00 $ 4,400.00 March 25 200 @ S 62.00 @ 80 @ 4,400.00 $ 50.00 $ 55.00 $ 60.00 $ 62.00 @ 200 @ = 12,400.00 $ 16,800.00 March 29 @ $50.00 @ $55.00 @ $ 60.00 @ S 62.00 0.00 0.00 @ $ 50.00 @ $ 55.00 $ 60.00 @ $ 62.00 0.00 Totals $ 0.00 $ 0.00