Question

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

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 70 units @ \$50.40 per unit Mar. 5 Purchase 210 units @ \$55.40 per unit Mar. 9 Sales 230 units @ \$85.40 per unit Mar. 18 Purchase 70 units @ \$60.40 per unit Mar. 25 Purchase 120 units @ \$62.40 per unit Mar. 29 Sales 100 units @ \$95.40 per unit Totals 470 units 330 units

1. Compute cost of goods available for sale and the number of units available for sale.

 Cost of Goods Available for Sale # of units Cost per Unit Cost of Goods Available for Sale Beginning inventory Purchases: March 5 March 18 March 25 Total

Compute the number of units in ending inventory.

 Ending inventory units

 Calculation of cost of goods available for sale : Number of units available for sale Cost per unit Cost of goods available for sale Beginning inventory 70 50.40 3528 Purchases : 0 March 5 210 55.40 11634 0 March 18 70 60.40 4228 0 March 25 120 62.40 7488 Total 470 26878
 Total units sold = 230 + 100 330 units Ending inventory = Number of units available for sale - Total units sold = 470 - 330 140 units