Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 80 units A $50.60 per unit 215 units ệ $55.60 per unit Units Sold at Retail March 1 Beginning inventory March 5 Purchase March 9 Sales 240 units @ s85.60 per unit March 18 March 25 Purchase 75 units @ $60.60 per unit 130 units e $62.60 per unit Purchase March 29 Sales 110 units @ S95.60 per unit 350 units Totals 500 units
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost 80 units A $50.60 per unit 215 units ệ $55.60 per unit Units Sold at Retail March 1 Beginning inventory March 5 Purchase March 9 Sales 240 units @ s85.60 per unit March 18 March 25 Purchase 75 units @ $60.60 per unit 130 units e $62.60 per unit Purchase March 29 Sales 110 units @ S95.60 per unit 350 units Totals 500 units
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12RE: Carla Company uses the perpetual inventory system. The following information is available for...
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4
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
for March.
Date
Activities
Units Acquired at Cost
80 units e $50.60 per unit
215 units A $55.60 per unit
Units Sold at Retail
March 1
Beginning inventory
Purchase
March 5
March 9
Sales
240 units e $85.60 per unit
March 18
Purchase
Purchase
75 units @ S60.60 per unit
130 units @ $62.60 per unit
March 25
March 29
Sales
110 units @ $95.60 per unit
ces
Totals
500 units
350 units
Problem 5-1A (Algo) Part 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97b5df25-1667-438a-b46e-c2a0d1ae7c86%2Fc184f3a2-817c-4b83-ae38-0e5560c7bdbd%2Fm3unq5f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
4
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions
for March.
Date
Activities
Units Acquired at Cost
80 units e $50.60 per unit
215 units A $55.60 per unit
Units Sold at Retail
March 1
Beginning inventory
Purchase
March 5
March 9
Sales
240 units e $85.60 per unit
March 18
Purchase
Purchase
75 units @ S60.60 per unit
130 units @ $62.60 per unit
March 25
March 29
Sales
110 units @ $95.60 per unit
ces
Totals
500 units
350 units
Problem 5-1A (Algo) Part 1
Transcribed Image Text:Problem 5-1A (Algo) Part 1
f4
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
Cost of Goods Available for Sale
Cost per
Unit
Cost of Goods Available
for Sale
# of units
ok
Beginning inventory
Purchases:
March 5
ces
March 18
March 25
Total
Expert Solution
Step 1
FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell out first. At the end of year we assume that the latest inventory is pending.
LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sell out first. At the end of year we assume that the latest inventory is sell-out and oldest inventory is pending in the ending stock.
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