Question

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

Date			Transactions	Units				Unit Cost				Total Cost
March	1		Beginning inventory		20			$	180				$	3,600
March	5		Sale ($260 each)		15
March	9		Purchase		10				200					2,000
March	17		Sale ($310 each)		8
March	22		Purchase		10				210					2,100
March	27		Sale ($335 each)		12
March	30		Purchase		7				230					1,610
													$	9,310

Required:

1 a) Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

Ending Inventory:

Cost of goods sold:

b) Using FIFO, calculate ending inventory and cost of goods sold at March 31.

Ending Inventory:

Cost of goods sold:

c) Using LIFO, calculate ending inventory and cost of goods sold at March 31.

Ending Inventory:

Cost of goods sold:

d ) Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)

Ending inventory:

cost of goods sold:

e) Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places).

f) If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1