Question

Required information [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 20 Unit Cost $185 Total Cost $ 3,700 15 Date March 1 March 5 March 9 March 17 March 22 March 27 March 3 Transactions Beginning inventory Sale ($270 each) Purchase Sale ($320 each) Purchase Sale ($345 each) Purchase 10 205 2,050 2,150 2,115 $10,015

Answer 1

• Requirements
• [1]

	Specific Identification
Ending Inventory	$      3,140.00
Cost of Goods Sold	$      6,875.00

• [2]

	FIFO
Ending Inventory	$      3,190.00
Cost of Goods Sold	$      6,825.00

• [3]

	LIFO
Ending Inventory	$              2,590.00
Cost of Goods Sold	$              7,425.00

• [4]

	Weighted Average
Ending Inventory	$                 2,861.46
Cost of Goods Sold	$                 7,153.65

• [5]

	Specific Identification	FIFO	LIFO	Weighted Average Method
Sales Revenue	$    10,750.00	$    10,750.00	$            10,750.00	$               10,750.00
(-) Cost of Goods Sold (as calculated above)	$      6,875.00	$      6,825.00	$              7,425.00	$                 7,153.65
Gross Profits	$ 3875	$      3,925.00	$              3,325.00	$                 3,596.35

• Workings

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	20	$              185.00	$                        3,700.00	20	$             185.00	$                 3,700.00	0	$              185.00	$                         -
Purchases:
09-Mar	10	$              205.00	$                        2,050.00	10	$             205.00	$                 2,050.00	0	$              205.00	$                         -
22-Mar	10	$              215.00	$                        2,150.00	5	$             215.00	$                 1,075.00	5	$              215.00	$            1,075.00
30-Mar	9	$              235.00	$                        2,115.00		$             235.00	$                              -	9	$              235.00	$            2,115.00
TOTAL	49		$                      10,015.00	35		$                 6,825.00	14		$            3,190.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	20	$              185.00	$                        3,700.00	6	$             185.00	$                 1,110.00	14	$              185.00	$            2,590.00
Purchases:
09-Mar	10	$              205.00	$                        2,050.00	10	$             205.00	$                 2,050.00	0	$              205.00	$                         -
22-Mar	10	$              215.00	$                        2,150.00	10	$             215.00	$                 2,150.00	0	$              215.00	$                         -
30-Mar	9	$              235.00	$                        2,115.00	9	$             235.00	$                 2,115.00	0	$              235.00	$                         -
TOTAL	49		$                      10,015.00	35		$                 7,425.00	14		$            2,590.00
Specific Identification	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	20	$              185.00	$                        3,700.00	19	$             185.00	$                 3,515.00	1	$              185.00	$                185.00
Purchases:
09-Mar	10	$              205.00	$                        2,050.00	8	$             205.00	$                 1,640.00	2	$              205.00	$                410.00
22-Mar	10	$              215.00	$                        2,150.00	8	$             215.00	$                 1,720.00	2	$              215.00	$                430.00
30-Mar	9	$              235.00	$                        2,115.00	0	$             235.00	$                              -	9	$              235.00	$            2,115.00
TOTAL	49		$                      10,015.00	35		$                 6,875.00	14		$            3,140.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	20	$              185.00	$                        3,700.00
Purchases:
09-Mar	10	$              205.00	$                        2,050.00
22-Mar	10	$              215.00	$                        2,150.00
30-Mar	9	$              235.00	$                        2,115.00
TOTAL	49	$            204.388	$                      10,015.00	35	$        204.3900	$                 7,153.65	14	$          204.3900	$            2,861.46