Reference no: EM132911520

Pluto Pet Company Limited had the following purchases and sales of Product A during themonth of April 2021:

                                     No of units                    Unit Cost

05-Apr Purchase          10,000                    4.50$

08-Apr Purchase           20,000                   5.25$

15-Apr Sale                25,000

20-Apr Purchase          10,000                    5.10$

22-Apr Sale                 15,000

29-Apr Purchase            7,500                         5.25$

Pluto Pet Company began the month with 10,000 units with a cost of $5.00 each. The selling price for units sold in April was $20.00 per unit and Pluto uses a perpetual inventory system. All inventory purchases & sales are on account.

Required:

Problem 1. Calculate the cost of goods sold for the month of April using the weighted average cost flow assumption.

Problem 2. Calculate the cost of goods sold for the month of April using the FIFO cost flow assumption

Problem 3. Calculate the gross profit for the month of April for Pluto assuming they use FIFO

Problem 4. Prepare the journal entries to record the April 8 purchase of inventory & the April 22 sale assuming they are using weighted average cost flow assumption