Warnerwoods Company And Liverpool Company_Invetory Valuation

Warnerwoods Company And Liverpool Company_Invetory Valuation.

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 170 units @ $52.40/unit
Mar. 5 Purchase 260 units @ $57.40/unit
Mar. 9 Sales 330 units @$87.40/unit
Mar. 18 Purchase 120 units @ $62.40/unit
Mar. 25 Purchase 220 units @$64.40/unit
Mar. 29 Sales 200 units @$97.40/unit




Totals 770 units 530 units









 

1.

 

 

 

Required:
1. Compute cost of goods available for sale and the number of units available for sale.

3. 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 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your average cost per unit to 2 decimal places.)

 

 

 

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 100 units from beginning inventory and 230 units from the March 5 purchase; the March 29 sale consisted of 80 units from the March 18 purchase and 120 units from the March 25 purchase.(Round your final answers to two decimal places.)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A physical inventory of Liverpool Company taken at December 31 reveals the following.

 

Per Unit

Item Units Cost Market
Audio equipment
Receivers 349 $ 104 $ 94
CD players 264 125 115
MP3 players 330 100 90
Speakers 208 45 56
Video equipment
Handheld LCDs 484 129 154
VCRs 295 88 97
Camcorders 216 326 314
Car audio equipment
Satellite radios 189 88 74
CD/MP3 radios 174 109 101

 

 

 

2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.(If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

Warnerwoods Company And Liverpool Company_Invetory Valuation

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