Question 1PT Water Canon sells 2 types of water pumps. HP7 Pumps are used forfactories and WP7 Pumps for housing. The following is presented dataobtained from inventory control cards during March 2022.Incoming GoodsTotal Cost/unitGood outTotal Price/unitDateInventory28-Feb-22200 $500 $40010-Mar-2245015-Mar-22WP7 Pumps 20-Mar-2225-Mar-22500 $450400 $475400 $57030-Mar-22300 $50028-Feb-22600 $600 $300 $8003-Mar-2290012-Mar-22HP7 Pumps 18-Mar-22950900 $1.08021-Mar-2229-Mar-22500 $1.000600 $1.140Asked:1. From the data above, calculate the Ending Inventory (quantity and cost), Cost ofGoods Sold, and Gross Profit for March 2022, using the FIFO and Average costassumption methods, if the inventory recording system uses:a. Periodic Inventory Systemb. Perpetual Inventory2. Systemlt is an analysis of the ratio relevant to the above data, give your opinionfrom the results of the analysis, which cost assumption method provides a betterratio? (recording method using PeriodicInventorySystem).

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Description: Question 1PT Water Canon sells 2 types of water pumps. HP7 Pumps are used forfactories and WP7 Pumps for housing. The following is presented dataobtained from inventory control cards during March 2022.Incoming GoodsTotal Cost/unitGood outTotal Price

PT Water Canon sells two types of water pumps. One is for factory use and other is for housing use.…

Business

Accounting

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

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

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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