Question 1 PT Water Canon sells 2 types of water pumps. HP7 Pumps are used for factories and WP7 Pumps for housing. The following is presented data obtained from inventory control cards during March 2022. | Date Incoming Goods Total Cost/unit Good out Total Price/unit Inventory 28-Feb-22 200 $ 400 10-Mar-22 500 $ 450 15-Mar-22 500 $ 450 WP7 Pumps 20-Mar-22 400 $ 475 25-Mar-22 400 $ 570 30-Mar-22 300 $ 500 28-Feb-22 600 $ 800 3-Mar-22 600 $ 900 12-Mar-22 300 $ 950 HP7 Pumps 18-Mar-22 900 $ 1.080 21-Mar-22 500 $ 1.000 29-Mar-22 600 $ 1.140 Asked: 1. From the data above, calculate the Ending Inventory (quantity and cost), Cost of Goods Sold, and Gross Profit for March 2022, using the FIFO and Average cost assumption methods, if the inventory recording system uses: a. Periodic Inventory System b. Perpetual Inventory 2. SystemIt is an analysis of the ratio relevant to the above data, give your opinion from the results of the analysis, which cost assumption method provides a better ratio? (recording method using PeriodicInventorySystem).
Question 1 PT Water Canon sells 2 types of water pumps. HP7 Pumps are used for factories and WP7 Pumps for housing. The following is presented data obtained from inventory control cards during March 2022. | Date Incoming Goods Total Cost/unit Good out Total Price/unit Inventory 28-Feb-22 200 $ 400 10-Mar-22 500 $ 450 15-Mar-22 500 $ 450 WP7 Pumps 20-Mar-22 400 $ 475 25-Mar-22 400 $ 570 30-Mar-22 300 $ 500 28-Feb-22 600 $ 800 3-Mar-22 600 $ 900 12-Mar-22 300 $ 950 HP7 Pumps 18-Mar-22 900 $ 1.080 21-Mar-22 500 $ 1.000 29-Mar-22 600 $ 1.140 Asked: 1. From the data above, calculate the Ending Inventory (quantity and cost), Cost of Goods Sold, and Gross Profit for March 2022, using the FIFO and Average cost assumption methods, if the inventory recording system uses: a. Periodic Inventory System b. Perpetual Inventory 2. SystemIt is an analysis of the ratio relevant to the above data, give your opinion from the results of the analysis, which cost assumption method provides a better ratio? (recording method using PeriodicInventorySystem).
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 72BPSB: ( Appendices 6A and 6B) Inventory Costing Methods Edwards Company began operations in February 2019....
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