Question

Compute the number of units available for sale in March. 1(b). Compute the number of units in ending inventory on March 31. 2. Compute the cost assigned to ending inventory using specific identification. Note: The March 9 sale consists of 80 units from March 1 purchase and 340 units from the March 5 purchase; the March 29 sale consists of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Answer 1

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

Answer 2

Answer:

Closing stock = sum of all purchase stocks amounts - 420 - 160

Explanation:

Date        Stock units  Cost Price

1 March Opening balance of stock    

5 March Purchase of stock      

9 March Sale (80 units + 340 units)   (420)

18 March Purchase  

25 March Purchase  

29 March  Sale (40 + 120)    (160)    

31 March Closing stock = sum of all purchase amounts – 420 – 160

Since the amounts of stock bought on the 1st, 5th, 18th and 25th are not given, it is impossible to calculate the required closing balance. Also, the cost price of each purchase is not given, therefore we cant compute the cost assigned to ending inventory.