Question -
Warnerwoods Company uses a perpetual Inventory system. It entered into the following purchase transactions for March.
|
Date
|
Activities
|
Units Acquired at Cost
|
Units Sold at Retail
|
|
Mar 1
|
Beginning inventory
|
210 units @ $53.20/unit
|
|
|
Mar 5
|
Purchase
|
280 units @ $58.20/unit
|
|
|
Mar 9
|
Sales
|
|
370 units @ $88.20/unit
|
|
Mar 18
|
Purchase
|
140 units @ $63.20/unit
|
|
|
Mar 25
|
Purchase
|
260 units @ $65.20/unit
|
|
|
Mar 29
|
Sales
|
|
240 units @ $98.20/unit
|
|
|
Totals
|
890 units
|
610 units
|
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
2. 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 of120 units from beginning inventory and 250 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 140 units from the March 25 purchase.