Question

Waterway 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 500 $ 300 $ 150,000 1,250 1,000 750 $ $ $ 450 475 500 $ 562.500 $ 475.000 $ 375.000 1,250 $ 540 $ 570 $ 675.000 $ 570,000 1,250 Residential Pumps Inventory at Feb. 28: Purchases: March 10 March 20 March 30 Sales: March 15 March 25 Inventory at March 31: Commercial Pumps Inventory at Feb. 28: Purchases: March 3 March 12 March 21 Sales: March 18 March 29 Inventory at March 31: 1,500 $ 800 $ 1,200,000 1,500 750 1,250 $ 900 $ 950 $1,000 $1,350.000 $ 712,500 $1,250,000 2,250 1,500 1,250 $ 1,080 $ 1,140 $2430,000 $ 1.710,000

Answer 1

Stores Ledger Account (LIFO)
Month	Receipts			Issue			Inventory Balance
	Qty.	Price	Value	Qty.	Price	Value	Qty.	Price	Value
Residential Pumps
Opening Inventory Mar 1	500	300	150,000	-	-	-	500	300	150,000
Mar 10 Purchase	1,250	450	562,500	-	-	-	500	300	150,000
							1,250	450	562,500
Mar 15 Sale	-	-	-	1,250	450	562,500	500	300	150,000
Mar 20 Purchase	1,000	475	475,000	-	-	-	500	300	150,000
							1,000	475	475,000
Mar 25 Sale	-	-	-	1,000	475	475,000	500	300	150,000
Mar 30 Purchase	750	500	375,000	-	-	-	500	300	150,000
							750	500	375,000
Total Residential Pumps					COGS	1,037,500	Closing Balance		525,000
Commercial Pumps
Opening Inventory Mar 1	1,500	800	1,200,000	-	-	-	1,500	800	1,200,000
Mar 3 Purchase	1,500	900	1,350,000	-	-	-	1,500	800	1,200,000
							1,500	900	1,350,000
Mar 12 Purchase	750	950	712,500	-	-	-	1,500	800	1,200,000
							1,500	900	1,350,000
							750	950	712,500
Mar 18 sale	-	-	-	1,500	900	1,350,000	1,500	800	1,200,000
				750	950	712,500
Mar 21 Purchase	1,250	1,000	1,250,000	-	-	-	1,500	800	1,200,000
							1,250	1,000	1,250,000
Mar 29 Sale	-	-	-	1,250	1,000	1,250,000	1,250	800	1,000,000
				250	800	200,000
Total Commercial Pumps					COGS	3,512,500	Closing Balance		1,000,000
Grand Total						4,550,000			1,525,000

Price Index

Inventory at Feb 28
Residential Pumps	150,000
Commercial Pumps	1,200,000		Price Index	Inventory at Current cost/Inventory at base cost
	1,350,000			=1,525,000/1,350,000
Inventory at Mar 31				1.13
Residential Pumps	525,000
Commercial Pumps	1,000,000
	1,525,000

*Stores ledger FIFO screenshot is attached, as I am not able to upload more than 65k characters.

Stores Ledger Account (FIFO) Receipts Price Value Qty. Price Issue Month Inventory Balance Qty. Price Value Qty. Value Residential Pumps Opening Inventory Mar 1 Mar 10 Purchase 500 1,250 300 450 150,000 562,500 150,000 150,000 562,500 225,000 Mar 15 sale 500 300 450 750 45 Mar 20 Purchase 1,000 475 475,000 500 300 500 1,250 450 150,000 500 450 337,500 500 450 1,000 475 225,000 500 475 237,500 500 475 750 500 950,000 Closing Balance 225,000 475,000 237,500 Mar 25 sale 500 450 475 500 Mar 30 purchase 750 500 375,000 237,500 375,000 612,500 Total Residential Pumps COGS

Commercial Pumps Opening Inventory Mar 1 Mar 3 Purchase 1,500 800 900 1,200,000 1,350,000 11.17 Mar 12 Purchase 950 712,500 712,500 . T . Mar 18 Sale 1,500 750 800 900 1,500 800 1,500 800 1,500 900 . 1,500 800 1,500 900 750 950 1,200,000 750 900 675,000 750 950 750 900 750 950 1,250 1,000 675,000 675,000 1,250 1,000 712,500 3,262,500 Closing Balance 4,212,500 1,200,000 1,200,000 1,350,000 1,200,000 1,350,000 712,500 675,000 712,500 675,000 712,500 1,250,000 1,250,000 Mar 21 Durabaco Mar 21 Purchase 1,250 1,000 1,250,000 Mar 29 sale - 750 750 900 950 COGS Total Commercial Pumps Grand Total 1,250,000 1,862,500