Required information Problem 51A Perpetual Alternative cost

Required information

Problem 5-1A Perpetual: Alternative cost flows LO P1

[The following information applies to the questions displayed below.]

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

Problem 5-1A Part 3

3. Compute the cost assigned to ending inventory using weighted average and specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 210 units from the March 5 purchase; the March 29 sale consisted of 60 units from the March 18 purchase and 100 units from the March 25 purchase.

I need weghted average and Specific ID.

Date

Activities

Units Acquired at Cost

Units Sold at Retail

Mar.

1

Beginning inventory

130

units

@ $51.60 per unit

Mar.

5

Purchase

240

units

@ $56.60 per unit

Mar.

9

Sales

290

units

@ $86.60 per unit

Mar.

18

Purchase

100

units

@ $61.60 per unit

Mar.

25

Purchase

180

units

@ $63.60 per unit

Mar.

29

Sales

160

units

@ $96.60 per unit

Totals

650

units

450

units

Solution

Solution Date Transacton Unit Price Cost Mar-01 Opening Inventory 130 $ 51.60 $ 6,708 Mar-05 Purchase 240 $56.60 $ 13,584 Mar-18 purchase 100 $ 61.60 $ 61,600 Mar-25 Purchase 180 $ 63.60 $ 11,448 Total 650 $ 37,900 Weighted average cost per unit = Total cost / Total unit = $ 37,900 / 650 unit = $ 58.3077 Valuation of inventory at closing = Closing unit x weighted average cost per unit = 200 unit x $ 58.3077 = $ 11661.54 Note Closing Inventory = (Opening inventory + purchase) - sale unit = 650 unit - 290 unit - 160 unit = 200 unit