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. Units Unit Cost $ 205 20 Total Cost $ 4,100 15 Transactions Beginning inventory Sale ($310 each) Purchase Sale ($360 each) Purchase Sale ($385 each) Purchase 225 Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 2,250 235 2,350 255 2,295 $10,995 7. 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.) View transaction list Journal entry worksheet Record the LIFO adjustment.

Answer 1

2o Date particulars FIFO 122 Purchases 10 Issues 20 cost value units cast value Balance a units Bol units cost units PUP 20 205 4100 march 1 Balance op. - - 205 3075 5 205 1075 Issues 5 9 10 225 - 2250 - purchases - 5 205 tons 10 225 2250 LLLLLLLL 2 1 225 1575 - 17 - Issues - 22 purchase . 10 235 2350 0 CS VE yo? - Dip 205 1025 Ž 225 675 - - - CBD 2.25 1575 235 175 7 225 10 235 5 235 2350 125 7 277,Issue s eh 235 255 255 2295 1175 2245 9 30 Purchase

LIFO Date particulars march purchases CPO u value Balance in 5 Beginning Desues purchases - - - 9 Illues U CPU value o CPU value 205 4100 15 205 3075 5 205 1025 20 S 1025 10' 225 2250 8 225 1800 5 205 1025 3472225450 225 2250 17 Issues - - - 22 purchases 10 235 2350 S 205 2 225 450 w o 235 2350 . 10 .235-2350 s 205 lozs 2. Issues 2 225 450 30 purchases 9 255 2295 - - - s 205. 1025 9255 2295 Endingt Ending Inventory in FI FO = 3470- 2 Ending Inventory in LIKO = 3320 Dilference between FI FOKLIFO is 150 (3470 -3320) Tournal Entry 1. iso . Inventory cost of Goods hold iso (to record LIFO Adjustment

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