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 below] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Mar. 1 Beginning inventory Mar. 5 Purchase Mar. 9 Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales Activities Units Acquired at Cost 200 units $53.00 per unit 275 units $58.00 per unit Units Sold at Retail 360 units $88.00 per unit 135 units $63.00 per unit 250 units@ $65.00 per unit 230 units $98.00 per unit Totals 860 units 590 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

Explanation / Answer

1) Calculation of cost of goods available for sale (Amounts in $)

2) Units available for sale = 860 units

Total units sold = 360+230 = 590 units

Ending inventory in unit = Units available for sale - units sold

= 860 units - 590 units = 270 units

Particulars No. of units (A) Cost per unit (B) Cost of goods available for sale (A*B) Beginning Inventory 200 units $53 10,600 Purchases March 5 275 units $58 15,950 March 18 135 units $63 8,505 March 25 250 units $65 16,250 Total 860 units 51,305

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.