My Specific question regards Q3 LIFO and FIFO because my excel template only inc
ID: 2488879 • Letter: M
Question
My Specific question regards Q3 LIFO and FIFO because my excel template only includes 3 rows and 8 columns,so my instructor is not looking for the entire worksheet just the total numbers? Am I missing something?
Original Question: The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system:
Date
Activities
Units Acquired at Cost
Cost per Unit
Units Sold at Retail
Price per unit
March 1
Beginning inventory
100 units
$50
March 5
Purchase
400 units
$55
March 9
Sales
420
$85
March 18
Purchase
120 units
$60
March 25
Purchase
200 units
$62
March 29
Sales
160 units
$95
Totals
820 units
580 units
Instructions:
Show all of your work in an Excel spreadsheet for the following tasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.)
Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)
Excel Spreadsheet attachment (this form needs to be filled out) :
PART 3
Warnerwood Company
Column->
A
B
C
D
E
F
G
Date
Activities
# Units Buy
Cost/unit
#Units Sold
Price/unit
Cost GAS
Sales
1-Mar
BI
5-Mar
TI
9-Mar
TO
18-Mar
TI
25-Mar
TI
29-Mar
TO
TOTAL
Q1. Units in Available for Sales is BI + TI (Column B)=
Units (BI + TI) =
Q2. BI + TI - TO = EI=
820
minus
580
equals
240
Q3. FIFO
Q3. LIFO
Q3. Weighted Average
Weighted cost/unit=
Cost EI=
Q.4
Sales
COGS/Method
Gross Profit
Q4. FIFO
Q4. LIFO
Q4. WtAvg
Date
Activities
Units Acquired at Cost
Cost per Unit
Units Sold at Retail
Price per unit
March 1
Beginning inventory
100 units
$50
March 5
Purchase
400 units
$55
March 9
Sales
420
$85
March 18
Purchase
120 units
$60
March 25
Purchase
200 units
$62
March 29
Sales
160 units
$95
Totals
820 units
580 units
Explanation / Answer
FIFO Opening Stock Purchase Total Stock Sales Closing Stock Avg Cost/Unit Sales revenue Date Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Mar 1. 100.00 50.00 5,000 - - - 100.00 5,000 - - - 100.00 5,000 50.00 Mar 5. 100.00 20.00 5,000 400.00 55.00 22,000 500.00 27,000 - - - 500.00 27,000 54.00 Mar 9. 500.00 27,000 - - 500.00 27,000 100.00 50.00 5,000 400.00 22,000 54.00 8,500 Mar 9. 400.00 22,000 - - 400.00 22,000 320.00 55.00 17,600 80.00 4,400 55.00 27,200 Mar 18. 80.00 4,400 120.00 60.00 7,200 200.00 11,600 - - 200.00 11,600 58.00 Mar 25. 200.00 11,600 200.00 62.00 12,400 400.00 24,000 - - - 400.00 24,000 60.00 Mar 29. 400.00 24,000 - - - 400.00 24,000 80.00 55.00 4,400 320.00 19,600 60.00 7,600 Mar 29. 320.00 19,600 - - 320.00 19,600 80.00 60.00 4,800 240.00 14,800 61.25 7,600 Mar31. 240.00 14,800 - 240.00 14,800 240.00 14,800 61.67 Total 720.00 41,600 580.00 31,800 50,900 - Units Opening Stock 100 Add Purchase 720 Total Goods available for sale = 820 Less units sold 580 Closing inventory 240 LIFO Opening Stock Purchase Total Stock Sales Closing Stock Avg Cost/Unit Sales revenue Date Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Mar 1. 100.00 50.00 5,000 - - - 100.00 5,000 - - - 100.00 5,000 50.00 Mar 5. 100.00 20.00 5,000 400.00 55.00 22,000 500.00 27,000 - - - 500.00 27,000 54.00 Mar 9. 500.00 27,000 - - 500.00 27,000 400.00 55.00 22,000 100.00 5,000 54.00 34,000 Mar 9. 100.00 5,000 - - 100.00 5,000 20.00 50.00 1,000 80.00 4,000 50.00 1,700 Mar 18. 80.00 4,000 120.00 60.00 7,200 200.00 11,200 - - 200.00 11,200 56.00 Mar 25. 200.00 11,200 200.00 62.00 12,400 400.00 23,600 - - - 400.00 23,600 59.00 Mar 29. 400.00 23,600 - - - 400.00 23,600 160.00 62.00 9,920 240.00 13,680 59.00 15,200 Mar 29. 240.00 13,680 - - 240.00 13,680 - - - 240.00 13,680 57.00 - Mar31. 240.00 13,680 - 240.00 13,680 240.00 13,680 57.00 Total 720.00 41,600 580.00 32,920 50,900 - Wtd average Opening Stock Purchase Total Stock Sales Closing Stock Avg Cost/Unit Sales revenue Date Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Unit Rate Value Mar 1. 100.00 50.00 5,000 - - - 100.00 5,000 - - - 100.00 5,000 50.00 Mar 5. 100.00 20.00 5,000 400.00 55.00 22,000 500.00 27,000 - - - 500.00 27,000 54.00 Mar 9. 500.00 27,000 - - 500.00 27,000 420.00 54.00 22,680 80.00 4,320 54.00 35,700 Mar 9. 80.00 4,320 - - 80.00 4,320 - 80.00 4,320 54.00 - Mar 18. 80.00 4,320 120.00 60.00 7,200 200.00 11,520 - - 200.00 11,520 57.60 Mar 25. 200.00 11,520 200.00 62.00 12,400 400.00 23,920 - - - 400.00 23,920 59.80 Mar 29. 400.00 23,920 - - - 400.00 23,920 160.00 59.80 9,568 240.00 14,352 59.80 15,200 Mar 29. 240.00 14,352 - - 240.00 14,352 - - - 240.00 14,352 59.80 - Mar31. 240.00 14,352 - 240.00 14,352 240.00 14,352 59.80 Total 720.00 41,600 580.00 32,248 50,900 - Details FIFO LIFO Wtd Avg Ending inventory 14,800 13,680 14,352 Cost of goods sold 31,800 32,920 32,248 Sales revenue 50,900 50,900 50,900 Gross profit 19,100 17,980 18,652
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