Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactionsfor March.DateActivitiesUnits Acquired at Cost100 units @ $50.00 per unit400 units @ $55.00 per unitUnits Sold at Retail1 Beginning inventory5 PurchaseMar.Mar.Mar.9 Sales420 units @ $85.00 per unitMar. 18 Purchase120 units @ $60.00 per unit200 units @ $62.00 per unitMar. 25 PurchaseMar. 29 Sales160 units @ $95.00 per unitTotals820 units580 units3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. Forspecific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; theMarch 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.Complete this question by entering your answers in the tabs below.WeightedAverageSpecific IdPerpetual FIFO Perpetual LIFOCompute the cost assigned to ending inventory using FIFO.

Name: Warnerwoods Company uses a perpetual inventory system. It entered int
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Description: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactionsfor March.DateActivitiesUnits Acquired at Cost100 units @ $50.00 per unit400 units @ $55.00 per unitUnits Sold at Retail1 Beginning

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
for March.
Date
Activities
Units Acquired at Cost
100 units @ $50.00 per unit
400 units @ $55.00 per unit
Units Sold at Retail
1 Beginning inventory
5 Purchase
Mar.
Mar.
Mar.
9 Sales
420 units @ $85.00 per unit
Mar. 18 Purchase
120 units @ $60.00 per unit
200 units @ $62.00 per unit
Mar. 25 Purchase
Mar. 29 Sales
160 units @ $95.00 per unit
Totals
820 units
580 units
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 80 units from beginning inventory and 340 units from the March 5 purchase; the
March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.
Complete this question by entering your answers in the tabs below.
Weighted
Average
Specific Id
Perpetual FIFO Perpetual LIFO
Compute the cost assigned to ending inventory using FIFO.

Expert Solution

Step 1

FIFO: under FIFO, good purchased first will used for sale or production first

LIFO: Most recent purchases will be used for sale or production

weighted average: This method is used to assign the average cost of product, based on average cost cost of goods sold per unit will be computed

specific identification Method: this gives detailed inventory cost and inventory cost. it is method when the movement of goods are specific

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