Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.

Question Completion:

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date Activities Units Acquired at Cost Total Cost / Sales

Mar. 1 Beginning inventory 70 units at $50.40 $3,528  

Mar. 5 Purchase 210 units at $55.40 11,634

Mar. 9 Sales 230 units at $85.40 19,642

Mar.18 Purchases 70 units at $60.40 4,228

Mar. 25 Purchases 120 units at $62.40 7,488

Mar. 29 Sales 100 units at $95.40 9,540

Total units available for sale = 470

Total Sales = 330 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 50 units from beginning inventory and 180 units from the March 5 purchase; the March 29 sale consisted of 30 units from the March 18 purchase and 70 units from the March 25 purchase.

Warnerwoods Company

Cost Assignment           Ending Inventory       Cost of Goods Sold

(a) specific identification:          $8,206                  $18,672

(b) weighted average                   8,414                   18,464.50

(c) FIFO                                        8,696                   18,182

(d) LIFO                                        8,080                   18,798

Explanation:

a) Data and Calculations:

Date    Activities              Units Acquired at Cost           Total Cost / Sales

Mar. 1 Beginning inventory   70 units at$50.40               $3,528  

Mar. 5 Purchase                  210 units at $55.40                11,634

Mar. 9 Sales                        230 units at $85.40                             $19,642

Mar.18 Purchases                  70 units at $60.40               4,228

Mar. 25 Purchases              120 units at $62.40                7,488

Mar. 29 Sales                      100 units at $95.40                             $9,540

Total units available for sale = 470                                $26,878  

Total Sales = 330 (230 + 100) units                                               $29,182

Ending Inventory = 140 (470 - 330) units

1. For specific identification, Cost of goods sold:

March 9 sale 50 units from beginning inventory at $50.40 = $2,520

and 180 units from the March 5 purchase at $55.40 = 9,972

March 29 sale 30 units from the March 18 purchase at $60.40 = 1,812  

and 70 units from the March 25 purchase at $62.40 = 4,368

Total for cost of goods sold under specific identification = $18,672

Ending Inventory = Cost of goods available for sale minus Cost of goods sold

= $8,206 ($26,878 - $18,672)

Weighted Average:

Cost of goods Sold

March 9 sales of 230 units at $54.15 ($3,528+11,634)/280 =   $12,454.50

March 29 sales of 100 units at $60.10 $2,707.50+4,228+7,488) 6,010.00

Total cost of goods sold = $18,464.50

Ending Inventory = 140 units at $60.10 = $8,414

Workings:

Balance of inventory of 50 units at $54.15  2,707.50

Purchases                      70 units at $60.40    4,228

Purchases                    120 units at $62.40    7,488

Total                            240 units                 $14,423.50/240 = $60.10

FIFO:

Cost of Goods Sold

March 9 sales of 230 units (70*$50.40 + 160*$55.40) =   $12,392

March 29 sales of 100 units (50*$55.40 + 50*$60.40) =      5,790

Total cost of goods sold = $18,182

Ending Inventory:

Cost of goods available for sale minus Cost of goods sold

= $8,696 ($26,878 - 18,182)

LIFO:

Cost of Goods Sold

March 9 sales of 230 units (20*$50.40 + 210*$55.40) =   $12,558

March 29 sales of 100 units (100*$62.40) =                           6,240

Total cost of goods sold = $18,798

Ending Inventory

Cost of goods available for sale minus Cost of goods sold

= $8,080 ($26,878 - 18,798)

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.