1. Prepare the Inventory Stock Record and gross profit for the Sprinkler Heads for Craig's Design and Landscaping on the following Complete the Inventory Record using the FIFO (first-in first out) method for Sprinkler Heads using the Sales and Purchase information below: Date 2-Sep 6-Sep 8-Sep 13-Sep 14-Sep Type of Transaction Purchase Purchase Sale Purchase Sale Quantity 8 7 10 15 12 Purchase/Sales Price 20 22 50 25 50 $ $ $ $ $ 2. Craig has some questions regarding reporting and recording nventory. Answer the following questions on the Questions sheet. e sure to answer in complete sentences, using proper grammar and sentence structure.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**1. Inventory Preparation and Gross Profit Calculation for Sprinkler Heads**

Craig's Design and Landscaping needs to prepare an inventory stock record and calculate the gross profit for the sprinkler heads. Use the FIFO (first-in, first-out) method with the provided sales and purchase data:

| Date    | Type of Transaction | Quantity | Purchase/Sales Price |
|---------|---------------------|----------|----------------------|
| 2-Sep   | Purchase            | 8        | $20                  |
| 6-Sep   | Purchase            | 7        | $22                  |
| 8-Sep   | Sale                | 10       | $50                  |
| 13-Sep  | Purchase            | 15       | $25                  |
| 14-Sep  | Sale                | 12       | $50                  |

**2. Inventory Reporting and Recording Queries**

Craig has some questions about inventory reporting and recording. Complete answers should be provided in full sentences, using proper grammar and sentence structure, on the questions sheet.
Transcribed Image Text:**1. Inventory Preparation and Gross Profit Calculation for Sprinkler Heads** Craig's Design and Landscaping needs to prepare an inventory stock record and calculate the gross profit for the sprinkler heads. Use the FIFO (first-in, first-out) method with the provided sales and purchase data: | Date | Type of Transaction | Quantity | Purchase/Sales Price | |---------|---------------------|----------|----------------------| | 2-Sep | Purchase | 8 | $20 | | 6-Sep | Purchase | 7 | $22 | | 8-Sep | Sale | 10 | $50 | | 13-Sep | Purchase | 15 | $25 | | 14-Sep | Sale | 12 | $50 | **2. Inventory Reporting and Recording Queries** Craig has some questions about inventory reporting and recording. Complete answers should be provided in full sentences, using proper grammar and sentence structure, on the questions sheet.
### Inventory Record: Sprinkler Heads

**FIFO (First In, First Out)**

This table tracks the inventory of sprinkler heads for the month of September using the FIFO accounting method. The table is divided into three main sections: Purchases, Cost of Goods Sold, and Inventory on Hand.

#### Purchases

- **Columns**: Date, Quantity, Unit Cost, Total Cost
- **Rows**: Dates are provided for recording purchases made on specific days. The information includes the quantity of items purchased, the unit cost, and the total cost of purchases.

#### Cost of Goods Sold

- **Columns**: Quantity, Unit Cost, Total Cost
- **Rows**: Used to track the cost of goods that are sold over the period. It requires recording quantities of items sold, unit costs, and the total cost for the sold items.

#### Inventory on Hand

- **Columns**: Quantity, Unit Cost, Total Cost
- **Rows**: Displays the remaining inventory after sales have been made. This section provides a snapshot of current stock levels, including quantities, unit costs, and the total cost of inventory on hand.

**Note**: Not all cells will have data. Use cells as needed.

#### Additional Task

Calculate the **Gross Profit** and **Gross Profit %** on the sales for the sprinkler heads for the month of September.

---

This setup ensures that the inventory levels are managed efficiently and that the cost associated with purchasing and selling is transparent and calculated accurately.
Transcribed Image Text:### Inventory Record: Sprinkler Heads **FIFO (First In, First Out)** This table tracks the inventory of sprinkler heads for the month of September using the FIFO accounting method. The table is divided into three main sections: Purchases, Cost of Goods Sold, and Inventory on Hand. #### Purchases - **Columns**: Date, Quantity, Unit Cost, Total Cost - **Rows**: Dates are provided for recording purchases made on specific days. The information includes the quantity of items purchased, the unit cost, and the total cost of purchases. #### Cost of Goods Sold - **Columns**: Quantity, Unit Cost, Total Cost - **Rows**: Used to track the cost of goods that are sold over the period. It requires recording quantities of items sold, unit costs, and the total cost for the sold items. #### Inventory on Hand - **Columns**: Quantity, Unit Cost, Total Cost - **Rows**: Displays the remaining inventory after sales have been made. This section provides a snapshot of current stock levels, including quantities, unit costs, and the total cost of inventory on hand. **Note**: Not all cells will have data. Use cells as needed. #### Additional Task Calculate the **Gross Profit** and **Gross Profit %** on the sales for the sprinkler heads for the month of September. --- This setup ensures that the inventory levels are managed efficiently and that the cost associated with purchasing and selling is transparent and calculated accurately.
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