Reference no: EM132479421

Perpetual: Alternative cost flows

[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.

DateActivitiesUnits Acquired at CostUnits Sold at Retail

Mar.1 Beginning inventory 140units@ $51.80 per unit

Mar.5 Purchase 245units@ $56.80 per unit

Mar.9 Sales 300units@ $86.80 per unit

Mar.18 Purchase 105units@ $61.80 per unit

Mar.25 Purchase 190units@ $63.80 per unit

Mar.29 Sales 170units@ $96.80 per unit Totals 680units 470units

Question 1: 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 85 units from beginning inventory and 215 units from the March 5 purchase; the March 29 sale consisted of 65 units from the March 18 purchase and 105 units from the March 25 purchase.