[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 RetailMarch 1Beginning inventory230units@ $53.60 per unit March 5Purchase290units@ $58.60 per unit March 9Sales 390units@ $88.60 per unitMarch 18Purchase150units@ $63.60 per unit March 25Purchase280units@ $65.60 per unit March 29Sales 260units@ $98.60 per unit Totals950units 650units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, units sold include 130 units from beginning inventory, 260 units from the March 5 purchase, 110 units from the March 18 purchase, and 150 units from the March 25 purchase. ### Perpetual LIFO Inventory System - Educational Explanation**Objective:** Compute the cost assigned to ending inventory using LIFO (Last-In, First-Out) method.#### Breakdown of the Table:**Sections:**1. **Date**: The dates of inventory transactions.2. **Goods Purchased**: Details of inventory purchased (number of units and cost per unit).3. **Cost of Goods Sold (COGS)**: Cost details of the inventory units sold.4. **Inventory Balance**: Remaining inventory details after purchases and sales (number of units and cost per unit).#### Initial Inventory:- **March 1**: - **Inventory**: 230 units - **Cost per unit**: $53.60 - **Inventory Balance**: $12,328.00#### Transactions on March 5:- **Goods Purchased**: - # of units: [Blank] - Cost per unit: [Blank]- **Cost of Goods Sold**: - # of units sold: [Blank] - Cost per unit: [Blank] - Cost of Goods Sold: [Blank]- **Inventory Balance**: - # of units: [Blank] - Cost per unit: [Blank] - Inventory Balance: [Blank]#### Transactions on March 9:- **Goods Purchased**: - # of units: [Blank] - Cost per unit: [Blank]- **Cost of Goods Sold**: - # of units sold: [Blank] - Cost per unit: [Blank] - Cost of Goods Sold: [Blank]- **Inventory Balance**: - # of units: [Blank] - Cost per unit: [Blank] - Inventory Balance: [Blank]#### Transactions on March 18:- **Goods Purchased**: - # of units: [Blank] - Cost per unit: [Blank]- **Cost of Goods Sold**: - # of units sold: [Blank] - Cost per unit: [Blank] - Cost of Goods Sold: [Blank]- **Inventory Balance**: - # of units: [Blank] - Cost per unit: [Blank] - Inventory Balance: [Blank]#### Transactions on March 25:- **Goods Purchased**: - # of units: [Blank] - Cost per unit: [Blank]- ---**Inventory Evaluation using FIFO Method**---**Objective:**Compute the cost assigned to ending inventory using FIFO (First-In, First-Out).---### Perpetual FIFO Inventory Record| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance ||--------------|-----------------------------------------|--------------------------------------|------------------------------------------|| | # of Units | Cost per Unit | Total Cost | # of Units Sold | Cost per Unit | Total Cost | # of Units | Cost per Unit | Inventory Balance || March 1 | | | | | | | 230 | $53.60 | $12,328.00 || March 5 | | | | | | | | | || Total March 5| | | | | | | | | || March 9 | | | | | | | | | || Total March 9| | | | | | | | | || March 18 | | | | | | | | | || Total March 18| | | | | | | | | || March 25 | | | | | | | | | || Total March 25| | | | | | | | | || March 29 | | | | | | | | | || Total March 29| | | | | | | | | || **Totals** | | | | | | | | | |---**Instructions:**1. **Goods Purchased**: Record the number of units and the cost per unit for goods purchased on the respective dates.2. **Cost of Goods Sold**: When units are sold, record the number of units sold and their cost based on FIFO method.3. **Inventory Balance**: Track the remaining inventory balance after each transaction.**Explanation of Table Columns:**- **Date**: The date of the transaction.

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Description: [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 Ret

There are mainly Four Methods which are LIFO, FIFO, Weighted Average, and Specific Identification…

Answered: The following information applies to…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter6: Inventories

Section: Chapter Questions

Problem 6E: Perpetual inventory using FIFO Assume that the business in Exercise 6-5 maintains a perpetual...

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Date	Activities	Units Acquired at Cost	Units Sold at Retail
March 1	Beginning inventory	230	units	@ $53.60 per unit
March 5	Purchase	290	units	@ $58.60 per unit
March 9	Sales				390	units	@ $88.60 per unit
March 18	Purchase	150	units	@ $63.60 per unit
March 25	Purchase	280	units	@ $65.60 per unit
March 29	Sales				260	units	@ $98.60 per unit
	Totals	950	units		650	units