[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 March 1 March 5 March 9 March 18 March 25 March 29 Activities. Beginning inventory Purchase Sales Purchase Purchase Sales Totals roblem 6-1A (Static) Part 3 Units Acquired at Cost @$50 per unit @ $55 per unit 100 units 400 units 120 units 200 units 820 units @ $60 per unit @ $62 per unit Units Sold at Retail 420 units 160 units 580 units @ $85 per unit @$95 per unit Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For pecific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the arch 18 purchase, and 120 units from the March 25 purchase.
[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 March 1 March 5 March 9 March 18 March 25 March 29 Activities. Beginning inventory Purchase Sales Purchase Purchase Sales Totals roblem 6-1A (Static) Part 3 Units Acquired at Cost @$50 per unit @ $55 per unit 100 units 400 units 120 units 200 units 820 units @ $60 per unit @ $62 per unit Units Sold at Retail 420 units 160 units 580 units @ $85 per unit @$95 per unit Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For pecific identification, units sold include 80 units from beginning inventory, 340 units from the March 5 purchase, 40 units from the arch 18 purchase, and 120 units from the March 25 purchase.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
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Step 1: Define Inventory
VIEWStep 2: a) Compute the cost assigned to inventory using FIFO
VIEWStep 3: b) Compute the cost assigned to inventory using LIFO
VIEWStep 4: c) Compute the cost assigned to inventory using weighted average
VIEWStep 5: d) Compute the cost assigned to inventory using specific identification
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