80.2K

Verified Solution

Link Copied!

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

130

units

@ $65 per unit

Mar.

5

Purchase

430

units

@ $70 per unit

Mar.

9

Sales

450

units

@ $100 per unit

Mar.

18

Purchase

180

units

@ $75 per unit

Mar.

25

Purchase

260

units

@ $77 per unit

Mar.

29

Sales

220

units

@ $110 per unit

Totals

1,000

units

670

units

For specific identification, the March 9 sale consisted of 70 units from beginning inventory and 380 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 150 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.

• FIFO
• Periodic LIFO
• Weighted Average
• Specific Id

Compute the cost assigned to ending inventory using FIFO.

	a) Periodic FIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory $0 $0.00 $0 $0.00 $0 Purchases: March 5 0 $0.00 0 $0.00 0 March 18 0 $0.00 0 $0.00 0 March 25 0 0 $0.00 0 Total 0 0 0

Compute the cost assigned to ending inventory using LIFO.

	b) Periodic LIFO Cost of Goods Available for Sale Cost of Goods Sold Ending Inventory # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory Beginning inventory $0 Purchases: March 5 0 March 18 0 March 25 0 Total 0 0

Answer & Explanation Solved by verified expert

See Answer