12

Part 1 of 4

6.66

points

eBook

Ask

Print

References

!

Required information

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

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

for March.

Total

Date

March 1

March 5

March 9

March 18

March 25

March 29

Activities

Beginning inventory

Purchase

Sales

Purchase

Purchase

Beginning inventory

Purchases:

March 5

March 18

March 25

Sales

Totals

Required:

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

# of Units

For specific identification, units sold include 90 units from beginning inventory, 400 units from the March 5 purchase, 110

units from the March 18 purchase, and 190 units from the March 25 purchase.

Cost of Goods Available for Sale

170

1,240

$

470 $

260 $

340 $

Units Acquired at Cost

170 units @ $60 per unit

470 units @ $65 per unit

Cost per Cost of Goods Available

for Sale

Unit

260 units @ $70 per unit

340 units @ $72 per unit

1,240 units

60 $

65

70

72

$

10,200

Units Sold at Retail

30,550

18,200

24,480

83,430

490 units @ $95 per unit

300 units @ $105 per unit

790 units