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Required information [The following information applies to the questions displayed below) Warnerwoods Company uses a periodic lInventory system. it entered into the following purchases and sales transactions for March. Date ACtivaties Uits Acouired at Cost 170 units se per unit 470 units ses jer unit Uits Sold at Retall Mar. I beginning inventory Mar. S Purchase Mar. Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 400 unitse ss per unit 200 unitse S per unit 340 units 2 jer unit ,240 units 100 unitse sies per unit 790 units Totals For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 190 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and (a) specific identification. (Round your average cost per unit to 2 decimal places.)

Required information [The following information applies to the questions displayed below) Warnerwoods Company uses a periodic lInventory system. it entered into the following purchases and sales transactions for March. Date ACtivaties Uits Acouired at Cost 170 units se per unit 470 units ses jer unit Uits Sold at Retall Mar. I beginning inventory Mar. S Purchase Mar. Sales Mar. 18 Purchase Mar. 25 Purchase Mar. 29 Sales 400 unitse ss per unit 200 unitse S per unit 340 units 2 jer unit ,240 units 100 unitse sies per unit 790 units Totals For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 110 units from the March 18 purchase and 190 units from the March 25 purchase. 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (C) weighted average, and (a) specific identification. (Round your average cost per unit to 2 decimal places.)

FINANCIAL ACCOUNTING
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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### Inventory Valuation Methods #### Table Overview This document outlines the application of various inventory valuation methods: Periodic LIFO, Average Cost, and Specific Identification. The data spans transactions in March, detailing beginning inventories, purchases, cost of goods available for sale, cost of goods sold, and ending inventory. #### Periodic LIFO - **Beginning Inventory:** 170 units at $60.00, totaling $10,200. - **Purchases:** - March 8: 470 units at $65.00, totaling $30,550. - March 18: 260 units at $70.00, totaling $18,200. - March 25: 340 units at $72.00, totaling $24,480. - **Cost of Goods Available for Sale:** - Total units: 1,240 at a total cost of $83,430. - **Cost of Goods Sold:** - 790 units sold at $55,030. - **Ending Inventory:** - 450 units at $28,400. #### Average Cost - **Beginning Inventory:** 170 units at an average of $60.00, totaling $10,200. - **Purchases and Calculations:** - Same purchases as LIFO. - **Cost of Goods Available for Sale:** - Total units: 1,240 with an average cost of $67.30, totaling $83,430. - **Cost of Goods Sold:** - 790 units sold at an average cost of $67.30, totaling $53,151. - **Ending Inventory:** - 450 units with an average cost of $67.20, totaling $30,276. #### Specific Identification - **Beginning Inventory:** 170 units at $60.00, totaling $10,200. - **Purchases and Transactions:** - Same purchases as above, with specific units sold from each batch. - **Cost of Goods Available for Sale:** - Total units: 1,240 with a total cost of $83,430. - **Cost of Goods Sold:** - Specific units sold from each purchase batch: - 470 units at $65.00, - 260 units at $70.00, - 60 units at $72.00, totaling $70,510.
Transcribed Image Text:### Inventory Valuation Methods #### Table Overview This document outlines the application of various inventory valuation methods: Periodic LIFO, Average Cost, and Specific Identification. The data spans transactions in March, detailing beginning inventories, purchases, cost of goods available for sale, cost of goods sold, and ending inventory. #### Periodic LIFO - **Beginning Inventory:** 170 units at $60.00, totaling $10,200. - **Purchases:** - March 8: 470 units at $65.00, totaling $30,550. - March 18: 260 units at $70.00, totaling $18,200. - March 25: 340 units at $72.00, totaling $24,480. - **Cost of Goods Available for Sale:** - Total units: 1,240 at a total cost of $83,430. - **Cost of Goods Sold:** - 790 units sold at $55,030. - **Ending Inventory:** - 450 units at $28,400. #### Average Cost - **Beginning Inventory:** 170 units at an average of $60.00, totaling $10,200. - **Purchases and Calculations:** - Same purchases as LIFO. - **Cost of Goods Available for Sale:** - Total units: 1,240 with an average cost of $67.30, totaling $83,430. - **Cost of Goods Sold:** - 790 units sold at an average cost of $67.30, totaling $53,151. - **Ending Inventory:** - 450 units with an average cost of $67.20, totaling $30,276. #### Specific Identification - **Beginning Inventory:** 170 units at $60.00, totaling $10,200. - **Purchases and Transactions:** - Same purchases as above, with specific units sold from each batch. - **Cost of Goods Available for Sale:** - Total units: 1,240 with a total cost of $83,430. - **Cost of Goods Sold:** - Specific units sold from each purchase batch: - 470 units at $65.00, - 260 units at $70.00, - 60 units at $72.00, totaling $70,510.
**Required Information** **[The following information applies to the questions displayed below.]** Warnerwoods Company uses a periodic inventory system. It entered into the following purchase and sales transactions for March: | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |------------|------------------------------------|------------------------|----------------------| | March 1 | Beginning Inventory | 170 units @ $60 per unit | | | March 5 | Purchase | 470 units @ $65 per unit | | | March 9 | Sale | | 400 units @ $90 per unit | | March 18 | Purchase | 240 units @ $70 per unit | | | March 25 | Purchase | 360 units @ $72 per unit | | | March 29 | Sale | | 590 units @ $90 per unit | | **Totals** | | 1,240 units | 790 units | For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 10 units from the March 18 purchase and 590 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.)** **(a) Periodic FIFO** | Date | Cost of Goods Available for Sale | Cost of Goods Sold | Ending Inventory | |------------|--------------------------------------|----------------------------------------|------------------------------------| | | # of units | Cost per unit | Cost of Goods Available for Sale | # of units | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Ending Inventory | | Beginning Inventory | 170 | $60.00 | $10,200 | | | | | | | | Purchases | | | | | | | | | | | March 5 | 470 | $65.00 | $30,550 | 470 | $65.00 | $30,550 | 70 | $65.00 | $4
Transcribed Image Text:**Required Information** **[The following information applies to the questions displayed below.]** Warnerwoods Company uses a periodic inventory system. It entered into the following purchase and sales transactions for March: | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |------------|------------------------------------|------------------------|----------------------| | March 1 | Beginning Inventory | 170 units @ $60 per unit | | | March 5 | Purchase | 470 units @ $65 per unit | | | March 9 | Sale | | 400 units @ $90 per unit | | March 18 | Purchase | 240 units @ $70 per unit | | | March 25 | Purchase | 360 units @ $72 per unit | | | March 29 | Sale | | 590 units @ $90 per unit | | **Totals** | | 1,240 units | 790 units | For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 400 units from the March 5 purchase; the March 29 sale consisted of 10 units from the March 18 purchase and 590 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.)** **(a) Periodic FIFO** | Date | Cost of Goods Available for Sale | Cost of Goods Sold | Ending Inventory | |------------|--------------------------------------|----------------------------------------|------------------------------------| | | # of units | Cost per unit | Cost of Goods Available for Sale | # of units | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Ending Inventory | | Beginning Inventory | 170 | $60.00 | $10,200 | | | | | | | | Purchases | | | | | | | | | | | March 5 | 470 | $65.00 | $30,550 | 470 | $65.00 | $30,550 | 70 | $65.00 | $4
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