Need to compute cost of good sold for sale and number of units for sale using Specific identification
Need to compute cost of good sold for sale and number of units for sale using Specific identification
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need to compute cost of good sold for sale and number of units for sale using Specific identification.
![Required information
Problem 6-2AA Periodic: Alternative cost flows LO P3
[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.
Activities
Units Sold at Retail
Units Acquired at Cost
110 units @ $45 per unit
410 units @ $50 per unit
Date
1 Beginning inventory
5 Purchase
9 Sales
Mar.
Mar.
Mar.
430 units @ $80 per unit
Mar.
Mar. 25 Purchase
Mar. 29 Sales
18 Purchase
140 units @ $55 per unit
220 units @ $57 per unit
180 units @ $90 per unit
Totals
880 units
610 units
For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 370 units from the March 5
purchase; the March 29 sale consisted of 50 units from the March 18 purchase and 130 units from the March 25 purchase.
Problem 6-2AA Part 1
Required.
1. Compute cost of goods available for sale and the number of units available for sale.
Cost of Goods Available for Sale
Cost per
Unit
Cost of Goods Available
for Sale
# of Units
Beginning inventory
$
Purchases:
March 5
March 18
March 25
Total](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0e7471a5-62be-414e-9754-40cd3e6c9e86%2Fac863e5a-bc90-4d6a-8e4c-14de157db738%2Fr0jzsx6_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 6-2AA Periodic: Alternative cost flows LO P3
[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.
Activities
Units Sold at Retail
Units Acquired at Cost
110 units @ $45 per unit
410 units @ $50 per unit
Date
1 Beginning inventory
5 Purchase
9 Sales
Mar.
Mar.
Mar.
430 units @ $80 per unit
Mar.
Mar. 25 Purchase
Mar. 29 Sales
18 Purchase
140 units @ $55 per unit
220 units @ $57 per unit
180 units @ $90 per unit
Totals
880 units
610 units
For specific identification, the March 9 sale consisted of 60 units from beginning inventory and 370 units from the March 5
purchase; the March 29 sale consisted of 50 units from the March 18 purchase and 130 units from the March 25 purchase.
Problem 6-2AA Part 1
Required.
1. Compute cost of goods available for sale and the number of units available for sale.
Cost of Goods Available for Sale
Cost per
Unit
Cost of Goods Available
for Sale
# of Units
Beginning inventory
$
Purchases:
March 5
March 18
March 25
Total
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