Compute the cost assigned to ending inventory

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Problem - 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

120 units @ $51.40 per unit

 

Mar. 5

Purchase

235 units @ $56.40 per unit

 

Mar. 9

Sales

 

280 units @ $86.40 per unit

Mar. 18

Purchase

95 units @ $61.40 per unit

 

Mar. 25

Purchase

170 units @ $63.40 per unit

 

Mar. 29

Sales

 

150 units @ $96.40 per unit

Totals

 

620 units

430 units

Required - 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 75 units from beginning inventory and 205 units from the March 5 purchase; the March 29 sale consisted of 55 units from the March 18 purchase and 95 units from the March 25 purchase.

Reference no: EM132743887

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