Answer:
1. Total number of unit is 820
Total purchase is & 46, 600
2. Units in ending inventory is 240 units
3. Ending inventory is $13,510
Explanation:
1.Compute cost of goods available for sale and the number of units available for sale.
Beginning Inventory:100 Units @ $50=$ 5,000
Add purchases:
March 5 Purchase400 Units @ $55 =$ 22,000
March 18 Purchase 120 Units @ $60 =$7,200
March 25 Purchase 200Units @ 62 =$12,400
Therefore
Total Purchases is $41,600
Cost of goods available for sale: 820 units$ 46,600
The total number is the addition of all total units which is 820units
The addition of all the cost of purchase will give us $46600
2.Compute the number of units in ending inventory.
Units available for sale is 820
Less sales:
March 9 Sale420
March 29 Sale160
Total units sold is 580
Units in ending inventory is 240
3.Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round all amounts to cents.) -5*4 pts =-20 pts
Warnerwoods Company
Ending inventory cost as of March 31,
Using Different Inventory Costing Methods
FIFO method:
40 units @ $60=$ 2,400
200 units @ $62 =12,400
Ending inventory: $ 14,800
LIFO method:
100 units @ $50=$ 5,000
140 units @ $55= 7,700
Ending inventory:$ 12,700
Weighted Average method:
Cost of goods available for sale $46,600 / 820 units = $ 56.83 weighted average cost unit
Ending inventory: 240 units x $56.83 weighted average cost =$13,639.20
Specific Identification method:20 units @ $50=$ 1,000
60 units @ $55=2,750
80 units @ $60 =4,800
80 units @ $62= 4,960
Ending inventory:$13,510
