Required informationProblem 6-1A Perpetual: Alternative cost flows LO P1Skip to question [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. DateActivitiesUnits Acquired at CostUnits Sold at Retail Mar.1 Beginning inventory 100units@ $51.00 per unit Mar.5 Purchase 225units@ $56.00 per unit Mar.9 Sales 260units@ $86.00 per unit Mar.18 Purchase 85units@ $61.00 per unit Mar.25 Purchase 150units@ $63.00 per unit Mar.29 Sales 130units@ $96.00 per unit Totals 560units 390units Required informationProblem 6-1A 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 transactionsfor March.DateMar. 1 Beginning inventoryMar. 5 PurchaseMar. 9 SalesMar. 18 PurchaseMar. 25 PurchaseMar. 29 Sales.TotalsTotalActivitiesProblem 6-1A Part 1Beginning inventoryPurchases:March 5March 18March 25Units Acquired at Cost100 units @ $51.00 per unit225 units @ $56.00 per unit85 units @ $61.00 per unit150 units @ $63.00 per unit# of units560 unitsRequired:1. Compute cost of goods available for sale and the number of units available for sale.Cost of Goods Available for SaleUnits Sold at RetailCost per Cost of Goods AvailableUnitfor Sale260 units @ $86.00 per unit130 units@ $96.00 per unit390 units Problem 6-1A Part 33. Compute the cost assigned to ending Inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific Identification. Forspecific Identification, the March 9 sale consisted of 65 units from beginning Inventory and 195 units from the March 5 purchase; theMarch 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase.Complete this question by entering your answers in the tabs below.WeightedAverageCompute the cost assigned to ending inventory using FIFO.Perpetual FIFO Perpetual LIFOPerpetual FIFO:DateMarch 1March 5March 9March 18March 25March 29TotalsGoods Purchased# ofunitsSpecific IdCost per # of unitsunitsoldCost of Goods SoldCost per Cost of Goods Soldunit$< Perpetual FIFO0.00Inventory BalanceCost perunit# of units100 @ $51.00 = $5,100.00Perpetual LIFO >InventoryBalance

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Description: Required informationProblem 6-1A Perpetual: Alternative cost flows LO P1Skip to question [The following information applies to the questions displayed below.]Warnerwoods Company uses a perpetual inventory system. It entered into the following purchas

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Answered: Required information Problem 6-1A…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information

Problem 6-1A Perpetual: Alternative cost flows LO P1

Skip to question

[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.

Beginning inventory

100

units

@ $51.00 per unit

Mar.

Purchase

225

units

@ $56.00 per unit

Mar.

Sales

260

units

@ $86.00 per unit

Mar.

Purchase

units

@ $61.00 per unit

Mar.

Purchase

150

units

@ $63.00 per unit

Mar.

Sales

130

units

@ $96.00 per unit

Totals

560

units

390

units

Required information
Problem 6-1A 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
Mar. 1 Beginning inventory
Mar. 5 Purchase
Mar. 9 Sales
Mar. 18 Purchase
Mar. 25 Purchase
Mar. 29 Sales.
Totals
Total
Activities
Problem 6-1A Part 1
Beginning inventory
Purchases:
March 5
March 18
March 25
Units Acquired at Cost
100 units @ $51.00 per unit
225 units @ $56.00 per unit
85 units @ $61.00 per unit
150 units @ $63.00 per unit
# of units
560 units
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
Cost of Goods Available for Sale
Units Sold at Retail
Cost per Cost of Goods Available
Unit
for Sale
260 units @ $86.00 per unit
130 units@ $96.00 per unit
390 units

Problem 6-1A Part 3
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 65 units from beginning Inventory and 195 units from the March 5 purchase; the
March 29 sale consisted of 45 units from the March 18 purchase and 85 units from the March 25 purchase.
Complete this question by entering your answers in the tabs below.
Weighted
Average
Compute the cost assigned to ending inventory using FIFO.
Perpetual FIFO Perpetual LIFO
Perpetual FIFO:
Date
March 1
March 5
March 9
March 18
March 25
March 29
Totals
Goods Purchased
# of
units
Specific Id
Cost per # of units
unit
sold
Cost of Goods Sold
Cost per Cost of Goods Sold
unit
$
< Perpetual FIFO
0.00
Inventory Balance
Cost per
unit
# of units
100 @ $51.00 = $5,100.00
Perpetual LIFO >
Inventory
Balance

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