Item5Part 3 of 4 Item 5Required informationSkip 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 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. ### Inventory Management Educational Example: Data Table Explanation#### Specific Identification Inventory MethodBelow 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 StructureThe 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. #### VisualizationThere 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. **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.

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Description: Item5Part 3 of 4 Item 5Required informationSkip 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 f

Perpetual Inventory System :- Perpetual Inventory System system is an inventory management system it…

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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Item 5

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[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.

### 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.

**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.

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