80.2K

Verified Solution

Link Copied!

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

Date	Activities	Units Acquired at Cost			Units Sold at Retail
March 1	Beginning inventory	100	units	@ $50 per unit
March 5	Purchase	400	units	@ $55 per unit
March 9	Sales				420	units	@ $85 per unit
March 18	Purchase	120	units	@ $60 per unit
March 25	Purchase	200	units	@ $62 per unit
March 29	Sales				160	units	@ $95 per unit
	Totals	820	units		580	units

For specific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the March 18 purchase, and 120 units from the March 25 purchase.

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 units Cost Goods per unit Available for Sale 100 $ 50.00 $ 5,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit inventory Ending Inventory 100 $ 50.00 $ 5,000 0 $ 0.00 $ 0 400 $ 55.00 400 0 Beginning inventory Purchases: March 5 March 18 March 25 Total $ $ 55.00 60.00 22,000 4,800 80 120 $ 200 $ 820 60.00 62.00 22,000 7,200 12,400 $ 46,600 0 $ 40 $ 200 $ 240 0.00 60.00 62.00 0 0 2,400 12,400 $ 14,800 580 $ 31,800 b) Periodic LIFO Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods # of units Cost per unit Available for Sale 100 $ 50.00 $ 5,000 # of units sold Cost per unit Cost of Goods Sold # of units in ending Cost per unit inventory Ending Inventory 0 100 $ 50.00 $ 5,000 Beginning inventory Purchases: March 5 March 18 March 25 Total 400 $ 120 $ 200 $ 820 55.00 60.00 62.00 22,000 7,200 12,400 $ 46,600 0 100 $ 5,000 c) Average Cost Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of # of units Average Goods Cost per unit Available for Sale 100 $ 5,000 # of units Average Cost sold per Unit Cost of Goods Sold # of units in ending inventory Average Cost Ending per unit Inventory Beginning inventory Purchases: March 5 March 18 March 25 Total 400 120 200 22,000 7,200 12,400 $ 46,600 820 $ 0 d) Specific Identification Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory Cost per unit Cost of # of units Cost per # of units Goods unit Available sold for Sale 100 $ 50.00 $ 5,000 Cost of Goods Sold # of units in ending Cost per unit inventory Ending Inventory $ 0 $ 50.00 $ 0 0 0 Beginning inventory Purchases: March 5 March 18 March 25 Total 55.00 60.00 62.00 EAEA $ $ 55.00 60.00 0 400 $ 120 $ 200 $ 820 0 22,000 7,200 12,400 $ 46,600 0 $ 62.00 0 0 0

Answer & Explanation Solved by verified expert

See Answer