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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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