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. 1 Beginning inventory 100 units @ $51.00 per unit Mar. 5 Purchase 225 units @ $56.00 per unit Mar. 9 Sales 260 units @ $86.00 per unit Mar. 18 Purchase 85 units @ $61.00 per unit Mar. 25 Purchase 150 units @ $63.00 per unit Mar. 29 Sales 130 units @ $96.00 per unit Totals 560 units 390 units
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. 1 Beginning inventory 100 units @ $51.00 per unit Mar. 5 Purchase 225 units @ $56.00 per unit Mar. 9 Sales 260 units @ $86.00 per unit Mar. 18 Purchase 85 units @ $61.00 per unit Mar. 25 Purchase 150 units @ $63.00 per unit Mar. 29 Sales 130 units @ $96.00 per unit Totals 560 units 390 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
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. | 1 | Beginning inventory | 100 | units | @ $51.00 per unit | |||||||
Mar. | 5 | Purchase | 225 | units | @ $56.00 per unit | |||||||
Mar. | 9 | Sales | 260 | units | @ $86.00 per unit | |||||||
Mar. | 18 | Purchase | 85 | units | @ $61.00 per unit | |||||||
Mar. | 25 | Purchase | 150 | units | @ $63.00 per unit | |||||||
Mar. | 29 | 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6f91fd2-a8f3-4a2e-bb42-a8593f8622b2%2F5babb10a-5859-4f00-afe8-05a12d162ec2%2Fmje06lu_processed.png&w=3840&q=75)
Transcribed Image Text: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

Transcribed Image Text: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
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education