Gilmer Incorporated provided the following for the year of 2014.Gilmer uses the periodic inventory method. Gilmer had 150 units inending inventory.
Beginning inventory
100 units @ $10 cost per unit
Purchases during the year
March 1
100 units @ $11 cost per unit
June 1
100 units @ $12 cost per unit
September 1
100 units @ $13 cost per unit
December 1
100 units @ $14 cost per unit
Provide the following information:
What are purchases for the year?
What is cost of goods available for sale for the year?
Using the FIFO cost flow assumption, what is ending inventory forthe year?
Using the LIFO cost flow assumption, what is ending inventory forthe year?
Using the weighted average cost flow assumption, what is endinginventory for the year?
Gilmer Incorporated provided the following for the year of 2014.Gilmer uses the periodic inventory method. Gilmer had 150 units inending inventory.
Beginning inventory | 100 units @ $10 cost per unit |
Purchases during the year | |
March 1 | 100 units @ $11 cost per unit |
June 1 | 100 units @ $12 cost per unit |
September 1 | 100 units @ $13 cost per unit |
December 1 | 100 units @ $14 cost per unit |
Provide the following information:
What are purchases for the year?
What is cost of goods available for sale for the year?
Using the FIFO cost flow assumption, what is ending inventory forthe year?
Using the LIFO cost flow assumption, what is ending inventory forthe year?
Using the weighted average cost flow assumption, what is endinginventory for the year?
Related questions
Calculating Weighted-Average Cost Inventory Values
The Mann Corporation began operations in 2015. Informationrelating to the companyâs purchases of inventory and sales ofproducts for 2015 and 2016 is presented below
| 2015 | ||||||
|---|---|---|---|---|---|---|
| March 1 | Purchase | 200 | units | @ | $10 | per unit |
| June 1 | Sold | 120 | units | @ | $25 | per unit |
| September 1 | Purchase | 100 | units | @ | $14 | per unit |
| November 1 | Sold | 130 | units | @ | $25 | per unit |
| 2016 | ||||||
|---|---|---|---|---|---|---|
| March 1 | Purchase | 100 | units | @ | $16 | per unit |
| June 1 | Sold | 80 | units | @ | $30 | per unit |
| September 1 | Purchase | 100 | units | @ | $18 | per unit |
| November 1 | Sold | 100 | units | @ | $35 | per unit |
Calculate the weighted-average cost of goods sold and endinginventory for 2015 and 2016 assuming use of (a) the periodic methodand (b) the perpetual method.
a. Weighted-Average Periodic. Do not round your cost per unit.Do not round until your final answer. Round your answers to thenearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
b. Weighted-Average Perpetual. Do not round your cost per unit.Do not round until your final answer. Round your answers to thenearest whole number.
| 2015 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory | $Answer |
| 2016 | |
|---|---|
| Cost of goods sold | $Answer |
| Ending inventory |
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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