Required information Problem 6-1A Perpetual: Alternative cost flows LO P1 [The f
ID: 2589392 • 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.
Problem 6-1A Part 3
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 110 units from beginning inventory and 240 units from the March 5 purchase; the March 29 sale consisted of 90 units from the March 18 purchase and 130 units from the March 25 purchase.
Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 190 units @ $52.80 per unit Mar. 5 Purchase 270 units @ $57.80 per unit Mar. 9 Sales 350 units @ $87.80 per unit Mar. 18 Purchase 130 units @ $62.80 per unit Mar. 25 Purchase 240 units @ $64.80 per unit Mar. 29 Sales 220 units @ $97.80 per unit Totals 830 units 570 units Weighted Average Perpetual FIFO Perpetual LIFO Specific Id Compute the cost assigned to ending inventory using FIFO Perpetual FIFO: Goods Purchased #of units Cost of Goods Sold Inventory Balance Cost per unit # of units sold Cost per unit Cost of Goods Sold Cost per unit Inventory Balance Date # of units March 1 190 @ | $52.80| = 10,032.00 March 5 March 9 March 18 March 25 March 29 Totals $0.00Explanation / Answer
Calculation of cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.
Date
Goods purchased
Cost of goods sold
Inventory Balance
# of Units
cost per unit
# of Units sold
cost per unit
Cost of goods sold
# of units
cost per unit
Inventory balance
Mar. 1
190
52.8
10,032
Mar. 5
270
57.8
190
52.8
10,032
270
57.8
15,606
Mar. 9
190
52.8
10,032
160
57.8
9,248
110
57.8
6,358
Mar. 18
130
62.8
110
57.8
6,358
130
62.8
8,164
Mar. 25
240
64.8
110
57.8
6,358
130
62.8
8,164
240
64.8
15,552
Mar. 29
110
57.8
6,358
110
62.8
6,908
20
62.8
1,256
240
64.8
15,552
Cost assigned to ending inventory using (a) FIFO
260
16,808
Date
Goods purchased
Cost of goods sold
Inventory Balance
# of Units
cost per unit
# of Units sold
cost per unit
Cost of goods sold
# of units
cost per unit
Inventory balance
Mar. 1
190
52.8
10,032
Mar. 5
270
57.8
190
52.8
10,032
270
57.8
15,606
Mar. 9
270
57.8
15,606
80
52.8
4,224
110
52.8
5,808
Mar. 18
130
62.8
110
52.8
5,808
130
62.8
8,164
Mar. 25
240
64.8
110
52.8
5,808
130
62.8
8,164
240
64.8
15,552
Mar. 29
220
64.8
14,256
110
52.8
5,808
130
62.8
8,164
20
64.8
1,296
Cost assigned to ending inventory using (b) LIFO
260
15,268
Date
Goods purchased
Cost of goods sold
Inventory Balance
# of Units
cost per unit
# of Units sold
cost per unit
Cost of goods sold
# of units
cost per unit
Inventory balance
Mar. 1
190
52.8
10,032
Mar. 5
270
57.8
190
52.8
10,032
270
57.8
15,606
460
55.73
25,638
Mar. 9
350
55.73
19,506
110
55.73
6,130
Mar. 18
130
62.8
110
55.73
6,130
130
62.8
8,164
Mar. 25
240
64.8
110
55.73
6,130
130
62.8
8,164
240
64.8
15,552
480
62.18
29,846
Mar. 29
220
62.18
13,680
260
62.18
16,167
Cost assigned to ending inventory using (c) Weighted average
260
62.18
16,167
Working Notes:
1.Weighteg average price on march 9th Sales is = $ 25,638/460 units = $ 55.73
2.Weighteg average price on march 9th Sales is = $ 29,846/480 units = $ 62.18
Date
Goods purchased
Cost of goods sold
Inventory Balance
# of Units
cost per unit
# of Units sold
cost per unit
Cost of goods sold
# of units
cost per unit
Inventory balance
Mar. 1
190
52.8
10,032
Mar. 5
270
57.8
190
52.8
10,032
270
57.8
15,606
Mar. 9
110
52.8
5,808
80
52.8
4,224
240
57.8
13,872
30
57.8
1,734
Mar. 18
130
62.8
80
52.8
4,224
30
57.8
1,734
130
62.8
8,164
Mar. 25
240
64.8
80
52.8
4,224
30
57.8
1,734
130
62.8
8,164
240
64.8
15,552
Mar. 29
90
62.8
5,652
80
52.8
4,224
130
64.8
8,424
30
57.8
1,734
40
62.8
2,512
110
64.8
7,128
Cost assigned to ending inventory using (d) Specific identification.
260
15,598
Date
Goods purchased
Cost of goods sold
Inventory Balance
# of Units
cost per unit
# of Units sold
cost per unit
Cost of goods sold
# of units
cost per unit
Inventory balance
Mar. 1
190
52.8
10,032
Mar. 5
270
57.8
190
52.8
10,032
270
57.8
15,606
Mar. 9
190
52.8
10,032
160
57.8
9,248
110
57.8
6,358
Mar. 18
130
62.8
110
57.8
6,358
130
62.8
8,164
Mar. 25
240
64.8
110
57.8
6,358
130
62.8
8,164
240
64.8
15,552
Mar. 29
110
57.8
6,358
110
62.8
6,908
20
62.8
1,256
240
64.8
15,552
Cost assigned to ending inventory using (a) FIFO
260
16,808
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