Question

# Required information Problem 5-1A Perpetual: Alternative cost flows LO P1 [The following information applies to the...

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 Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 130 units @ \$51.60 per unit Mar. 5 Purchase 240 units @ \$56.60 per unit Mar. 9 Sales 290 units @ \$86.60 per unit Mar. 18 Purchase 100 units @ \$61.60 per unit Mar. 25 Purchase 180 units @ \$63.60 per unit Mar. 29 Sales 160 units @ \$96.60 per unit Totals 650 units 450 units

Problem 5-1A Part 3

3. Compute the cost assigned to ending inventory using weighted average and specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase.

I need weghted average and Specific ID.

 Solution Date Transacton Unit Price Cost Mar-01 Opening Inventory 130 \$ 51.60 \$ 6,708 Mar-05 Purchase 240 \$56.60 \$ 13,584 Mar-18 purchase 100 \$ 61.60 \$ 61,600 Mar-25 Purchase 180 \$ 63.60 \$ 11,448 Total 650 \$ 37,900 Weighted average cost per unit = Total cost / Total unit = \$ 37,900 / 650 unit = \$ 58.3077 Valuation of inventory at closing = Closing unit x weighted average cost per unit = 200 unit x \$ 58.3077 = \$ 11661.54 Note Closing Inventory = (Opening inventory + purchase) - sale unit = 650 unit - 290 unit - 160 unit = 200 unit

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