Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 [The f

Question

Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 [The following information applies to the questions displayed belowj Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Activities Units Sold at Retail Units Acquired at Cost 210 units $53.20 per unit 280 units $58.20 per unit Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 370 units $88.20 per unit 140 units$63.20 per unit 260 units $65.20 per unit 240 units $98.20 per unit 610 units Totals 890 units Problem 6-1A Part 1 Required 1. Compute cost of goods available for sale and the number of units available for sale Cost of Goods Available for Sale Cost per Cost of Goods Available # of units Unit for Sale Beginning inventory Purchases March 5 March 18 March 25 Total

Explanation / Answer

Ans.1 Number of units available for sale 890 Cost of goods available for sale 53268 Units Rate Total cost Beginning inventory 210 53.2 11172 Purchases: 5-Mar 280 58.2 16296 18-Mar 140 63.2 8848 25-Mar 260 65.2 16952 Total 890 53268 Ans.2 Ending inventory 280 Units *Calculation: Number of units in ending inventory = Total units available for sale - Sold units 890 - 610 280 *Calculation of sold units: 9-Mar 370 29-Mar 240 Total 610

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