Question

Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system

 

Date	Transactions	Units	Cost per Unit	Total Cost
August 1	Beginning inventory	8	$151	$	1,208
August 4	Sale ($180 each)	5
August 11	Purchase	10	141		1,410
August 13	Sale ($195 each)	8
August 20	Purchase	10	131		1,310
August 26	Sale ($205 each)	11
August 29	Purchase	11	121		1,331
				$	5,259

 

For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.

rev: 10_13_2016_QC_CS-65854

 1.

value:
5.00 points

Required information

 

Required:
1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method.

  

 

rev: 10_13_2016_QC_CS-65854

References

eBook & Resources

WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.

Check my work

 

 2.

value:
5.00 points

Required information

 

2. Using FIFO, calculate ending inventory and cost of goods sold at August 31.  

References

eBook & Resources

WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.

Check my work

 

 3.

value:
5.00 points

Required information

 

3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.  

References

eBook & Resources

WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.

Check my work

 

 4.

value:
5.00 points

Required information

 

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. (Round your intermediate and final answers to 2 decimal places.)  

References

eBook & Resources

WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.

Check my work

 

 5.

value:
5.00 points

Required information

 

5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)

 

 

References

eBook & Resources

WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.

Check my work