Question

(The following information applies to the questions displayed below.) 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. Units Cost per Unit $225 Total Cost $ 4,500 Date Transactions March 1 Beginning inventory March 5 Sale ($350 each) March 9 Purchase March 17 Sale ($400 each) March 22 Purchase March 27 Sale ($425 each) March 30 Purchase 245 2,450 255 2,550 275 1,925 $ 11,425

Answer 1

Greg's Bicycle Shop Income Statement Sales revenue Cost of goods sold Gross Profit Calculation =(15*350)+(8*400)+(12*425) 13,550.00 (8,275.00) 5,275.00 13,550.00 (8,225.00) 5,325.00 13,550.00 (8,725.00) 4,825.00 13,550.00 (8,507.98) 5,042.02

Greg's Bicycle Shop Periodic Inventory System Inventory sheet - Specific Identification Date Decription Quantity Cost per unit Total cost Calculation 1-Mar Beginning Inventory 20 $ 225.00 $ 4,500.00 9-Mar Purchase 10 $ 245.00 $ 2,450.00 22-Mar Purchase 10 $ 255.00 $ 2,550.00 30-Mar Purchase 7 $ 275.00 $ 1,925.00 Goods Available For Sale 47 $ 11,425.00 1-Mar Ending Inventory 1 $ 225.00 $ 225.00 20-15-4-1 units inventory 9-Mar Ending Inventory 2 $ 245.00 $ 490.00 =10-8= 2 units inventory 22-Mar Ending Inventory 2 $ 255.00 $ 510.00 =10-8= 2 units inventory 30-Mar Ending Inventory 7 $ 275.00 $ 1,925.00 none sold from March 30 inv Ending Inventory - total 12 $ 225.00 $ 3,150.00 =47-35=12 units inventory Cost of goods sold 35 $ 8,275.00 =15+8+12=35 units sold Inventory sheet - FIFO Date Decription 1-Mar Beginning Inventory 9-Mar Purchase 22-Mar Purchase 30-Mar Purchase Goods Available For Sale 30-Mar Ending Inventory 22-Mar Ending Inventory Ending Inventory - total Cost of goods sold Quantity Cost per unit Total cost Calculation 20 $ 225.00 $ 4,500.00 10 $ 245.00 $ 2,450.00 10 $ 255.00 $ 2,550.00 7 $ 275.00 $ 1,925.00 47 $ 11,425.00 in FIFO, latest purchase of $275 & 255 7 $ 275.00 $ 1,925.00 per unit cost is taken to value inv of 12 5 $ 255.00 $ 1,275.00 units 12 $ 225.00 $3,200.00 35 $ 8,225.00 =11,425-3,200 Calculation Inventory sheet - LIFO Date Decription 1-Mar Beginning Inventory 9-Mar Purchase 22-Mar Purchase 30-Mar Purchase Goods Available For Sale 1-Mar Ending Inventory Cost of goods sold Quantity Cost per unit Total cost 20 $ 225.00 $ 4,500.00 10 $ 245.00 $ 2,450.00 10 $ 255.00 $ 2,550.00 7 $ 275.00 $ 1,925.00 $ 11,425.00 12 $ 225.00 $ 2,700.00 35 $ 8,725.00 47 In LIFO, oldest pur of $225 per unit cost is taken to value inv =11,425-2,700 Inventory sheet - Average weighted cost Date Decription Quantity Cost per unit Total cost 1-Mar Beginning Inventory 20 $ 225.00 $ 4,500.00 9-Mar Purchase 10 $ 245.00 $ 2,450.00 22-Mar Purchase 10 $ 255.00 $ 2,550.00 30-Mar Purchase 7 $ 275.00 $ 1,925.00 Goods Available For Sale 47 '$ 243.09 $ 11,425.00 Avg cost per unit = 11,425/47 = $243.09 Ending Inventory 12 $ 243.09 $ 2,917.02 Multiply end inv of 12 units by $243.09 Cost of goods sold $ 8,507.98 -11,425-2,917.02 35