Answer Happy

Required information Problem 5-1A 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 Totals Activities Problem 5-1A Part 3 Units Acquired at Cost 100 units @ $53.00 per unit 400 units @ $58.00 per unit 120 units @ $63.00 per unit 200 units @ $65.00 per unit 820 units Units Sold at Retail 420 units @ $88.00 per unit 160 units @ $98.00 per unit 580 units 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 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Compute the cost assigned to ending inventory using FIFO. Perpetual FIFO: Date March 1 March 5 March 9 March 18 March 25 Goods Purchased # of units 400 @ 120 200 @ Cost per unit $ 58.00 $ 63.00 $ 65.00 # of units sold 420 X Cost of Goods Sold Cost per unit Cost of Goods Sold # of units 100 @ @ @ @ (8) Inventory Balance Cost per unit $ 53.00 $ 53.00 $ 58.00 $ 63.00 $ 63.00 $ 65.00 = Inventory Balance $5,300.00

Compute the cost assigned to ending inventory using LIFO. Perpetual LIFO: Date March 1 March 5 March 9 March 18 March 25 March 29 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold $ 0.00 # of units 100 @ Inventory Balance Cost per unit $ 53.00 Inventory Balance $5,300.00

Compute the cost assigned to ending inventory using weighted average. (Round your average cost per unit to 2 decimal places.) Weighted Average Perpetual: Date March 1 March 5 Average March 9 March 18 Average March 25 March 29 Totals Goods Purchased # of units Cost per unit # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold $ 0.00 # of units 100 @ Inventory Balance Cost per unit $ 53.00 = Inventory Balance $5,300.00

Perpetual FIFO Perpetual LIFO Date Compute the cost assigned to ending inventory using specific identification. For specific identification, the March 9 sale consisted of 80 units from beg inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the Man purchase. Specific Identification: March 1 March 5 March 9 March 18 March 25 March 29 Weighted Average Totals Goods Purchased # of units Specific Id Cost per unit # of units sold Cost of Goods Sold Cost per unit Cost of Goods Sold $ 0.00 # of units 100 @ Inventory Balance Cost per unit $ 53.00 = Inventory Balance $ 5,300.00