Question
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
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 | 120 | units | @ $51.40 per unit | |||||||
Mar. | 5 | Purchase | 235 | units | @ $56.40 per unit | |||||||
Mar. | 9 | Sales | 280 | units | @ $86.40 per unit | |||||||
Mar. | 18 | Purchase | 95 | units | @ $61.40 per unit | |||||||
Mar. | 25 | Purchase | 170 | units | @ $63.40 per unit | |||||||
Mar. | 29 | Sales | 150 | units | @ $96.40 per unit | |||||||
Totals | 620 | units | 430 | 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 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 55 units from the March 18 purchase and 95 units from the March 25 purchase.
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