Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 [The f
ID: 2402729 • Letter: R
Question
Required information
Problem 6-1A Perpetual: Alternative cost flows LO P1
[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.
Complete this questions by entering your answers in the below tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using FIFO.
Perpetual FIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per unit
# of units sold
Cost per unit
Cost of Goods Sold
# of units
Cost per unit
Inventory Balance
March 1
100
@
$50.00
=
$5,000.00
March 5
March 9
March 18
March 25
March 29
Totals
$0.00
$0.00
Complete this questions by entering your answers in the below tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using LIFO.
Perpetual LIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per unit
# of units sold
Cost per unit
Cost of Goods Sold
# of units
Cost per unit
Inventory Balance
March 1
100
@
$50.00
=
$5,000.00
March 5
March 9
March 18
March 25
March 29
Totals
$0.00
Perpetual FIFO
Weighted
Complete this questions by entering your answers in the below tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.)
Weighted Average Perpetual:
Goods Purchased
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per unit
# of units sold
Cost per unit
Cost of Goods Sold
# of units
Cost per 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
Perpetual LIFO
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
Cost of Goods Sold
Inventory Balance
Date
# of units
Cost per unit
# of units sold
Cost per unit
Cost of Goods Sold
# of units
Cost per unit
Inventory Balance
March 1
100
@
$50.00
=
$5,000.00
March 5
March 9
March 18
March 25
March 29
Totals
$0.00
Weighted Average
Sp
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
Explanation / Answer
STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 100 50 5000 5-Mar 400 55 22000 100 50 5000 400 55 22000 9-Mar 100 50 5000 320 55 17600 80 55 4400 18-Mar 120 60 7200 80 55 4400 120 60 7200 25-Mar 200 62 12400 80 55 4400 120 60 7200 200 62 12400 29-Mar 80 55 4400 40 60 2400 80 60 4800 200 62 12400 TOTAL 720 41600 580 31800 240 14800 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 100 50 5000 5-Mar 400 55 22000 100 50 5000 400 55 22000 9-Mar 400 55 22000 20 50 1000 80 50 4000 18-Mar 120 60 7200 80 50 4000 120 60 7200 25-Mar 200 62 12400 80 50 4000 120 60 7200 200 62 12400 29-Mar 160 62 9920 80 50 4000 120 60 7200 40 62 2480 TOTAL 720 41600 580 32920 240 13680 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 100 50 5000 5-Mar 400 55 22000 100 50 5000 400 55 22000 Average 500 54 27000 9-Mar 420 54 22680 80 54 4320 18-Mar 120 60 7200 80 54 4320 120 60 7200 Average 200 57.6 11520 25-Mar 200 62 12400 200 57.6 11520 200 62 12400 Average 400 59.8 23920 29-Mar 160 59.8 9568 240 59.8 14352 TOTAL 720 41600 580 32248 240 14352 STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL SPECIFIC IDENTIFICATION METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 1-Mar 100 50 5000 5-Mar 400 55 22000 100 50 5000 400 55 22000 9-Mar 80 50 4000 20 50 1000 340 55 18700 60 55 3300 18-Mar 120 60 7200 20 50 1000 60 55 3300 120 60 7200 25-Mar 200 62 12400 20 50 1000 60 55 3300 120 60 7200 200 62 12400 29-Mar 40 60 2400 20 50 1000 120 62 7440 60 55 3300 80 60 4800 80 62 4960 TOTAL 720 41600 580 32540 240 14060
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