Required information [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 Date March 1 March 5 March 9 March 18 March 25 March 29 Activities Beginning inventory Purchase Sales Purchase Purchase Sales Totals Units Acquired at Cost $53.60 per unit $58.60 per unit 230 units 290 units 150 units 200 unite 950 units $63.60 per unit $65.60 per unit Units Sold at Retail 390 unite# $86.60 per unit 260 unite $98.60 per unit 650 units

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in…