During March, Capsule Corp. reported a beginning inventory of apopular capsule of 1,200 units, all at $30/unit. The company uses aperpetual inventory system and the LIFO inventory costing method.These transactions occurred during the month:
5 March: Purchased 500 units at $32/unit
8 March: Returned 200 units originally purchased on 5 March.
11 March: Sold 700 Units for $50/unit
16 March: Sold 300 units for 55/unit
22 March: Purchased 800 units at $35/unit
24 March: Received an allowance of $1,600 for units purchased on22 March.
29 March: Sold 1,000 units for $53/unit
1. Find the cost of goods sold, and the value of endinginventory
During March, Capsule Corp. reported a beginning inventory of apopular capsule of 1,200 units, all at $30/unit. The company uses aperpetual inventory system and the LIFO inventory costing method.These transactions occurred during the month:
5 March: Purchased 500 units at $32/unit
8 March: Returned 200 units originally purchased on 5 March.
11 March: Sold 700 Units for $50/unit
16 March: Sold 300 units for 55/unit
22 March: Purchased 800 units at $35/unit
24 March: Received an allowance of $1,600 for units purchased on22 March.
29 March: Sold 1,000 units for $53/unit
1. Find the cost of goods sold, and the value of endinginventory
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Required information
Problem 6-1A Perpetual: Alternative cost flows LO P1
[The following information applies to the questionsdisplayed below.]
Warnerwoods Company uses a perpetual inventory system. It enteredinto the following purchases and sales transactions forMarch.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
Mar. | 1 | Beginning inventory | 100 | units | @ $50.00 per unit | |||||||
Mar. | 5 | Purchase | 400 | units | @ $55.00 per unit | |||||||
Mar. | 9 | Sales | 420 | units | @ $85.00 per unit | |||||||
Mar. | 18 | Purchase | 120 | units | @ $60.00 per unit | |||||||
Mar. | 25 | Purchase | 200 | units | @ $62.00 per unit | |||||||
Mar. | 29 | Sales | 160 | units | @ $95.00 per unit | |||||||
Totals | 820 | units | 580 | units | ||||||||
3. Compute the cost assigned to endinginventory using (a) FIFO, (b) LIFO, (c)weighted average, and (d) specific identification. Forspecific identification, the March 9 sale consisted of 80 unitsfrom beginning inventory and 340 units from the March 5 purchase;the March 29 sale consisted of 40 units from the March 18 purchaseand 120 units from the March 25 purchase.
Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using FIFO.
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Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using LIFO.
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Perpetual FIFO
Weighted
Complete this questions by entering your answers in thebelow tabs.
Perpetual FIFO
Perpetual LIFO
Weighted Average
Specific Id
Compute the cost assigned to ending inventory using weightedaverage. (Round your average cost per unit to 2 decimalplaces.)
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Perpetual LIFO
Compute the cost assigned to ending inventory using specificidentification. For specific identification, the March 9 saleconsisted of 80 units from beginning inventory and 340 units fromthe March 5 purchase; the March 29 sale consisted of 40 units fromthe March 18 purchase and 120 units from the March 25 purchase.
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Weighted Average
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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 | 160 | units | @ $52.20 per unit | |||||||
| Mar. | 5 | Purchase | 255 | units | @ $57.20 per unit | |||||||
| Mar. | 9 | Sales | 320 | units | @ $87.20 per unit | |||||||
| Mar. | 18 | Purchase | 115 | units | @ $62.20 per unit | |||||||
| Mar. | 25 | Purchase | 210 | units | @ $64.20 per unit | |||||||
| Mar. | 29 | Sales | 190 | units | @ $97.20 per unit | |||||||
| Totals | 740 | units | 510 | units | ||||||||
4.Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 95 units from beginning inventory and 225 units from the March 5 purchase; the March 29 sale consisted of 75 units from the March 18 purchase and 115 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)
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I need help filling the table!!
Part 3: The Warnerwood Company
The Warnerwood Company uses a perpetual inventory system. Itentered the following purchases and sales transactions for Marchinto the system:
Date | Activities | Units Acquired at Cost | Cost per Unit | Units Sold at Retail | Price per unit |
|---|---|---|---|---|---|
March 1 | Beginning inventory | 100 units | $50 | ||
March 5 | Purchase | 400 units | $55 | ||
March 9 | Sales | 420 | $85 | ||
March 18 | Purchase | 120 units | $60 | ||
March 25 | Purchase | 200 units | $62 | ||
March 29 | Sales |
| 160 units | $95 | |
Totals | 820 units | 580 units |
Instructions:
Show all of your work in an Excel spreadsheet for the followingtasks:
Compute the number of units available for sale.
Compute the number of units in ending inventory.
Compute the cost assigned to ending inventory using (a) FIFO,(b) LIFO, and (c) weighted average. (Round the average cost perunit to 2 decimal places.)
Compute the gross profit earned by the company for each of thethree costing methods. (Round the average cost per unit to 2decimal places.)
