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	Cost per Unit	Total Cost
March 1	Beginning inventory	20	$245	$	4,900
March 5	Sale ($390 each)	15
March 9	Purchase	10	265		2,650
March 17	Sale ($440 each)	8
March 22	Purchase	10	275		2,750
March 27	Sale ($465 each)	12
March 30	Purchase	8	295		2,360
				$	12,660

1.

Required information

Required:

1. 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.
  

Answer 1

Specific Identification Method Cost of Goods sold Ending Inventory No of Cost of goods Available for sale Cost of No of units Cost per goods unit Available for sale 245 Cost per unit Cost of goods No of units Cost per unit units Ending Inventory sold 20/ 4900 19 245 4655 245 245 March 1 Beginning inventory Purchases: Mar-09 Mar-22 Mar-30 Total at March 31 10 10 265 275 295 8 8 2 650 2750 2360 12660 265 275 295 2120 2200 21 21 8 13 265 275 295 530 5 50 2360 3685 35 8975