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

Business

1 answer:

gayaneshka [121]4 years ago

3 0

Answer:

(a) FIFO cost $ 17,510.00 includes 20 units @ $63.00 per unit and 250 units @ $ 65.00 per unit.

(b) LIFO cost $ 15,900.00 includes 115 units @ $53.00 per unit, 135 units @ $63.00 per unit and 20 units @ $65.00 per unit.

(d) Specific identification cost $ 16,240.00 includes 85 units @ 53.00 per unit, 30 units @ 58.00 per unit, 40 units @ 63.00 per unit and 115 units @65.00 per unit.

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Therefore, $203,000 - $201,000 = $2,000

The gain or loss on the retirement would be $2,000.

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Hence, bond retirement involves the cashing out of a bond that has been invested in.

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