Question
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
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 | 70 | units | @ $50.40/unit | |||||||
Mar. | 5 | Purchase | 210 | units | @ $55.40/unit | |||||||
Mar. | 9 | Sales | 230 | units | @ $85.40/unit | |||||||
Mar. | 18 | Purchase | 70 | units | @ $60.40/unit | |||||||
Mar. | 25 | Purchase | 120 | units | @ $62.40/unit | |||||||
Mar. | 29 | Sales | 100 | units | @ $95.40/unit | |||||||
Totals | 470 | units | 330 | units | ||||||||
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 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase. (Round your average cost per unit to 2 decimal places.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started