Question

# Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a periodic...

Required information

[The following information applies to the questions displayed below.]

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 100 units @ \$50.00 per unit Mar. 5 Purchase 400 units @ \$55.00 per unit Mar. 9 Sales 420 units @ \$85.00 per unit Mar. 18 Purchase 120 units @ \$60.00 per unit Mar. 25 Purchase 200 units @ \$62.00 per unit Mar. 29 Sales 160 units @ \$95.00 per unit Totals 820 units 580 units

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.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

ENDING INVENTORY IN UNITS=100+400-420+120+200-160=240UNITS

A. FIFO VALUATION

ENDING INVENTORY VALUE=40UNITS*\$60+200UNITS*62= \$14800

B. LIFO VALUATION

ENDING INVENTORY VALUE = 80UNITS REMAINING FROM BEGINING INVENTORY+ 120 UNITS REMAINING FROM PURCHSE MADE ON MARCH 2018+40 UNITS REMAINING FROM PURCHASE MADE ON MARCH 2025

= 80*\$50+120*\$60+40*\$62= \$13680

C. WEIGHTED AVERAGE

ENDING INVENTORY VALUE = 240 (100*50+400*55+120*60+200*62)/820= \$13639.02

D. SPECIFIC IDENTIFICATION

ENDING INVENTORY VALUE = 20UNITS*\$50+60UNITS*\$55+80UNITS*\$60+80UNITS*\$62

= \$14060

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