Monty Company sells two types of pumps. One is large and is for commercial use.

Question

Monty Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. Price per Unit Units Total Residential Pumps Inventory at Feb. 28 220 $ 380 $ 83,600 Purchases: 490 March 10 March 20 March 30 $460 $225,400 $490 $196,000 $520 $156,000 Sales: March 15 March 25 Inventory at March 31 510 $ 550 $275,000 $ 580 $232,000 Commercial Pumps Inventory at Feb. 28 590 $780 $460,200 Purchases: 590 March 3 March 12 March 21 $ 920 $542,800 $930 $269,700 $1,010 $505,000 Sales: March 18 March 29 Inventory at March 31 500 880 $1,080 $950,400 $1,120 $660,800

Explanation / Answer

Residentail Pumps STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Bal. Mar1 220 380 83600 220 380 83600 Purchasse 10-Mar 490 460 225400 490 460 225400 20-Mar 400 490 196000 190 490 93100 210 490 102900 30-Mar 300 520 156000 300 520 156000 TOTAL 1410 661000 900 402100 510 258900 Commercial Pumps STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Bal. Mar1 590 780 460200 590 780 460200 Purchasse 3-Mar 590 920 542800 590 920 542800 12-Mar 290 930 269700 290 930 269700 21-Mar 500 1010 505000 500 1010 505000 TOTAL 1970 1,777,700 1470 1272700 500 505000 Residential Commercial Total Cost of Inventory 258900 505000 763900 Cost of Goods sold 402100 1272700 1674800

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