Englehart Company sells two types of pumps. One is large and is for commercial u

Question

Englehart 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. Units Price per Unit Total Residential Pumps Inventory at Feb. 28: 200 $ 400 $ 80,000 Purchases: March 10 500 $ 450 $ 225,000 March 20 400 $ 475 $ 190,000 March 30 300 $ 500 $ 150,000 Sales: March 15 500 $ 540 $ 270,000 March 25 400 $ 570 $ 228,000 Inventory at March 31: 500 Commercial Pumps Inventory at Feb. 28: 600 $ 800 $ 480,000 Purchases: March 3 600 $ 900 $ 540,000 March 12 300 $ 950 $ 285,000 March 21 500 $ 1,000 $ 500,000 Sales: March 18 900 $ 1,080 $ 972,000 March 29 600 $ 1,140 $ 684,000 Inventory at March 31: 500 Collapse question part (a) Assuming Englehart uses a periodic inventory system, determine the cost of inventory on hand at March 31 and the cost of goods sold for March under first-in, first-out (FIFO). Cost of inventory $ Cost of goods sold $ Click if you would like to Show Work for this question:

Explanation / Answer

Units Price per Total Unit Residential Pumps Inventory at Feb. 28: 200 400 80000 Purchases: 10-Mar 500 450 225000 20-Mar 400 475 190000 30-Mar 300 500 150000 Sales: 15-Mar 500 540 270000 25-Mar 400 570 228000 Inventory at March 31: 500 Commercial Pumps Inventory at Feb. 28: 600 800 480000 Purchases: 3-Mar 600 900 540000 12-Mar 300 950 285000 21-Mar 500 1,000 500000 Sales: 18-Mar 900 1,080 972000 29-Mar 600 1,140 684000 Inventory at March 31: 500 Ans a Periodic system Residential Pumps Cost of good sold 400000 Ending Inventory (150000+200*475) 245000 Units Price per Total Unit Residential Pumps Inventory at Feb. 28: 200 400 80000 Purchases: 10-Mar 500 450 225000 20-Mar 200 475 95000 900 400000 COGS 1305000 Ending Inventory 500000 Commercial Pumps Inventory at Feb. 28: 600 800 480000 Purchases: 3-Mar 600 900 540000 12-Mar 300 950 285000 1500 1305000

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