Question

Required information Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4,6-5) [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 Unit Cost $ 155 Total Cost $3,180 se 175 1,750 Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory Sale ($210 each) Purchase Sale (5260 each) Purchase Sale ($285 each) Purchase 1,850 205 1,845 $8,545 Problem 6-2A Part 2 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. Ending inventory Cost of goods sold

Answer 1

Rate 155.00 175.00 Periodic Inventory method :- FIFO Date Particulars 01-Mar Beginning Inventory 09-Mar Purchases 22-Mar Purchases 30-Mar Purchases Total cost of goods available for sale Less: Units sold Ending inventory Units 20.00 10.00 10.00 9.00 49.00 35.00 14.00 Value 3,100 1,750 1,850 1,845 8,545 185.00 205.00 2,325 FIFO Cost of goods sold is :- For March-5 sales - Inventory of beginning will be used For March-17 sales - Units of beginning Inventory (5*155) Units of 9th March purchases (3*175) 775 525 1,300 For March-27 sales - Units of 9th March purchases (7*175) Units of 22nd March purchases (5*185) 1,225 925 2,150 Total cost of goods sold 5,775 5*185 Value of ending inventory is : Units of 22nd March purchases Units of 30th March purchases Value of ending inventory will be 98205 925 1,845 2,770