Question

Required information [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 Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 170 units @ $52.40 per unit Mar. 5 Purchase 260 units @ $57.40 per unit Mar. 9 Sales 330 units @ $87.40 per unit Mar. 18 Purchase 120 units @ $62.40 per unit Mar. 25 Purchase 220 units @ $64.40 per unit Mar. 29 Sales 200 units @ $97.40 per unit Totals 770 units 530 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 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.

Answer 1

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