Problem 5-1A Perpetual: Alternative cost flows LO P1
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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 Units Sold at Retail Mar. 1 Beginning inventory 160 units @ $52.20 per unit Mar. 5 Purchase 255 units @ $57.20 per unit Mar. 9 Sales 320 units @ $87.20 per unit Mar. 18 Purchase 115 units @ $62.20 per unit Mar. 25 Purchase 210 units @ $64.20 per unit Mar. 29 Sales 190 units @ $97.20 per unit Totals 740 units 510 units
Problem 5-1A Part 3
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 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase.