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 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 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
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 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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Item5
Part 3 of 4
Item 5
Required information
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 | ||||
---|---|---|---|---|---|---|---|
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 |
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.

Transcribed Image Text:### Inventory Management Educational Example: Data Table Explanation
#### Specific Identification Inventory Method
Below is a table structure that helps track inventory movement using the specific identification method. This technique is useful in determining the cost of goods sold (COGS) and ending inventory based on the specific costs of individual items.
#### Data Table Structure
The table is divided into several columns under three primary sections: Goods Available for Sale, Cost of Goods Sold, and Ending Inventory.
1. **Date**:
- Specific dates when inventory transactions occur (e.g., March 1, March 5, March 18, March 25).
2. **Goods Available for Sale**:
- **# of units**: Number of units available for sale on the specific dates.
- **Cost per unit**: Cost of each unit available for sale.
- **Cost of Goods Available for Sale**: Total cost of the goods that are available for sale (calculated as # of units multiplied by Cost per unit).
3. **Cost of Goods Sold (COGS)**:
- **# of units sold**: Number of units sold on the specific dates.
- **Cost per unit**: Cost per unit of the goods sold.
- **Cost of Goods Sold**: Total cost of the goods sold (calculated as # of units sold multiplied by Cost per unit).
4. **Ending Inventory**:
- **# of units in ending inventory**: Number of units remaining in inventory after sales.
- **Cost per unit**: Cost per unit for the ending inventory.
- **Ending Inventory**: Total cost of the ending inventory (calculated as # of units in ending inventory multiplied by Cost per unit).
#### Summary Button
- There is a highlighted button labeled "Weighted Average" which, when activated, allows the users to apply and calculate inventory metrics using the weighted average method.
By tracking these metrics, businesses can accurately measure financial outcomes from inventory activities. This table is an essential tool for accountants, as it simplifies the process of calculating COGS and managing ending inventory.
#### Visualization
There are no explicit graphs or diagrams in the current layout. If there were any, they would contain detailed visual representations of inventory dynamics over time, illustrating trends and allowing comparisons between different time periods.
This structured table serves as an educational template for students and professionals to practice and understand inventory management and cost allocation.

Transcribed Image Text:**Weighted Average Perpetual Inventory System**
This table illustrates the Weighted Average Perpetual Inventory method for tracking Goods Purchased, Cost of Goods Sold, and Inventory Balance. Below is an explanation of each section.
| Date | Goods Purchased | Cost of Goods Sold | Inventory Balance |
|----------------|-----------------------|--------------------------|-----------------------------------------------------|
| | # of units | Cost per unit | # of units sold | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Inventory Balance |
| March 1 | | | | | | 230 | $53.60 | $12,328.00 |
| March 5 | | | | | | | | |
| **Average March 5** | | | | | | | | |
| March 9 | | | | | | | | |
| March 18 | | | | | | | | |
| **Average March 18** | | | | | | | | |
| March 25 | | | | | | | | |
| **Average March 25** | | | | | | | | |
| March 29 | | | | | | | | |
| **Totals** | | | | | | | | |
### Explanation of Columns:
- **Date**: Specific date of transactions or calculations.
- **Goods Purchased**:
- `# of units`: Number of units purchased.
- `Cost per unit`: Cost per unit of purchased goods.
- **Cost of Goods Sold**:
- `# of units sold`: Number of units sold.
- `Cost per unit`: Cost per unit of sold goods calculated on a weighted average basis.
- `Cost of Goods Sold`: Total cost of goods sold.
- **Inventory Balance**:
- `# of units`: Number of units in inventory.
- `Cost per unit`: Weighted cost per unit.
- `Inventory Balance`: Total value of inventory.
### Detailed Analysis:
1.
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 3 steps with 1 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