Question

Required information Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (L06-3, 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 $ 245 Total Cost $ 4,900 20 15 10 265 Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory Sale ($390 each) Purchase Sale ($ 440 each) Purchase Sale ($ 465 each) Purchase 2,650 275 2,750 295 2,360 $12,660 Problem 6-2A Part 1 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. Ending inventory Cost of goods sold

Answer 1

3685 8975 Answers Specific Identification Ending Inventory Cost of Goods sold a) First in First out Ending Inventory Cost of Goods sold B) Last in First Out Ending Inventory Cost of Goods sold c) Weighted Average Cost Ending Inventory Cost of Goods sold 3735 8925 3185 9475 3429 9231 Specific Identification 14950 FIFO 14950 LIFO 14950 weighted average 14950 Sales Revenue Gross Profit = Sales Revneue - Cost of Goods Sold 5975 6025| 5475 5719

Periodic : FIFO cost of Goods Available for sales Cost of Goods Sold Inventory Balance cost of Goods Available for Cost Per Cost of # of Cost Per Ending # of Units Cost Per Unit sales # of Units sold Unit Goods Sold Units Unit Inventory Beginning inventory 20 245.00 4900 20 245.00 49000 245.00 Purchases Mar-09 10 265.00 2650 100 265.00 26500 265.00 Mar-22 101 275.000 2750 5 275.00 1375 275.000 1375 Mar-301 8 295.00 2360 0 295.00 81 295.00 2360 Totals 48 12660 35 8925 3735 131 Periodic :LIFO cost of Goods Available for sales Cost of Goods Sold Inventory Balance cost of Goods Available for Cost Per Cost of # of Cost Per Ending # of Units Cost Per Unit sales # of Units sold Unit Goods Sold Units Unit Inventory Beginning inventory 245.000 49001 7 245.00 1715 245.000 3185 Purchases Mar-09 265.000 2650 10 265.00 2650 0 265.00 Mar-22 10 275.00 2750 101 275.00 2750 275.00 Mar-30 81 295.00 23601 8 295.00 2360 0 295.00 Totals 48 12660 3 5 9475 13 3185 0

Periodic : average Cost cost of Goods Available for sales Cost of Goods Sold Inventory Balance cost of Goods Average Average Average Cost Available for Cost per Cost of #of Cost per Ending # of Units per unit sales # of Units sold unit Goods Sold Units unit Inventory Beginning inventory 245.00 4900 Purchases Mar-09 265.00 2650 Mar-22 275.00 2750 Mar-300 295.00 2360 Totals 48 263.75 126601 35 263.75 9231| 13|__263.75 Inventory Balance Cost Per Unit Ending Inventory Periodic: Specific Identification Goods Purchasd Cost of Goods Sold cost of Goods Available for Cost Per Cost of # of # of Units Cost Per Unit sales # of Units sold Unit G oods Sold Units Beginning inventory 245.00 4900 245 4655 Purchases Mar-09 265.00 26501 265 2120 Mar-22 275.00 2750 275 2200 Mar-30 295.00 2360 2951 Totals 12660 8975 245 245 265 275) 530 550 2360 3685 295