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Question - 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 150 units @ $52.00/unit Mar.5 Purchase 250 units @ $57.00/unit Mar.9 Sales 310 units@ $87.00/unit Mar.18 Purchase 110 units @ $62.00/unit Mar.25 Purchase 200 units @ $64.00/unit Mar.29 Sales 180 units@ $97.00/unit Totals 710 units 490 units
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 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase.
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