Question

Coronado 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:		360			$	300			$	108,000
Purchases:
	March 10		900			$	450			$	405,000
	March 20		720			$	475			$	342,000
	March 30		540			$	500			$	270,000
Sales:
	March 15		900			$	540			$	486,000
	March 25		720			$	570			$	410,400
	Inventory at March 31:		900
Commercial Pumps
	Inventory at Feb. 28:		1,080			$	800			$	864,000
Purchases:
	March 3		1,080			$	900			$	972,000
	March 12		540			$	950			$	513,000
	March 21		900			$	1,000			$	900,000
Sales:
	March 18		1,620			$	1,080			$	1,749,600
	March 29		1,080			$	1,140			$	1,231,200
	Inventory at March 31:		900

Assuming Coronado 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		? $

eTextbook and Media

Assume Coronado uses dollar-value LIFO and one pool, consisting of the combination of residential and commercial pumps. Determine the cost of inventory on hand at March 31 and the cost of goods sold for March. Assume Coronado’s initial adoption of LIFO is on March 1. Use the double-extension method to determine the appropriate price indices. (Hint: The price index for February 28/March 1 should be 1.00.) (Round Price Index to 3 decimal places e.g. 1.522 and other answers to 0 decimal places, e.g. 5,275.)

Cost of inventory		? $
Cost of goods sold		? $
Price index ?

Answer 1

	Coronado Pumps
	Statement Showing Inventory Record Under Periodic FIFO Method
	Receipts				Cost of goods sold			Balance
Date	Units	Rate	Amount $	Date	Units	Rate	Amount $	Units	Rate	Amount $
28-Feb	360	300	108,000	15-Mar	360	300	108,000
Purchases				15-Mar	540	450	243,000
10-Mar	900	450	405,000	25-Mar	360	450	162,000
20-Mar	720	475	342,000	25-Mar	360	475	171,000
30-Mar	540	500	270,000
31-Mar								360	475	171,000
								540	500	270,000
Total	2520		11,25,000		1620		684,000	900		441,000
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 $
28-Feb	1080	800	864,000	18-Mar	1080	800	864,000
Purchases				18-Mar	540	900	486,000
3-Mar	1080	900	972,000	29-Mar	540	900	486,000
12-Mar	540	950	513,000	29-Mar	540	950	513,000
21-Mar	900	1000	900,000
31-Mar								900	1000	9000,00
Total	3600		$324,9000		2700		234,9000	900		9000,00

				Residential	Commercial	Total
	Cost of inventory			1125000	3249000	4374000
	Cost of goods sold			684000	2349000	30330000

	Coronado Pumps
	Statement Showing Inventory Record Under Periodic LIFO Method
	Receipts				Cost of goods sold			Balance
Date	Units	Rate	Amount $	Date	Units	Rate	Amount $	Units	Rate	Amount $
28-Feb	360	300	108,000	15-Mar	540	500	270,000
Purchases				15-Mar	360	475	171,000
10-Mar	900	450	405,000	25-Mar	360	475	171,000
20-Mar	720	475	342,000	25-Mar	360	450	162,000
30-Mar	540	500	270,000
31-Mar								540	450	243,000
								360	300	108,000
Total	2520		11,25,000		1620		774,000	900		351,000
Commercial pumps
	Statement showing inventory record under periodic LIFO method
	Reciepts				Cost of goods sold			Balance
DATE	UNITS	RATE	AMOUNT $		UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
28-Feb	1080	800	864,000	18-Mar	900	1000	900,000
Purchases				18-Mar	540	950	513,000
3-Mar	1080	900	972,000	18-Mar	180	900	162,000
12-Mar	540	950	513,000	29-Mar	900	900	810,000
21-Mar	900	1000	900,000	29-Mar	180	800	144,000
31-Mar								900	800	720,000
Total	3600		$324,9000		2700		252,9000	900		720,000

				Residential	Commercial	Total
	Cost of inventory			1125000	3249000	4374000
	Cost of goods sold			774000	2529000	3303000