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Question -
Warnerwoods Company uses a perpetual Inventory system. It entered into the following purchase transactions for March.
Date
Activities
Units Acquired at Cost
Units Sold at Retail
Mar 1
Beginning inventory
210 units @ $53.20/unit
Mar 5
Purchase
280 units @ $58.20/unit
Mar 9
Sales
370 units @ $88.20/unit
Mar 18
140 units @ $63.20/unit
Mar 25
260 units @ $65.20/unit
Mar 29
240 units @ $98.20/unit
Totals
890 units
610 units
Required:
1. Compute cost of goods available for sale and the number of units available for sale.
2. 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 of120 units from beginning inventory and 250 units from the March 5 purchase; the March 29 sale consisted of 100 units from the March 18 purchase and 140 units from the March 25 purchase.
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