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. Unit Cost $170 Total Cost $3,400 Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory Sale ($240 each) Purchase Sale ($290 each) Purchase Sale ($315 each) Purchase 190 Units 20 15 10 8 10 12 9 1,900 200 2,000 220 1,980 $9, 280 For 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. 5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.) Specific Identification FIFO LIFO Weighted- average cost Sales revenue Gross profit

Answer 1

Hi

Let me know in case you face any issue:

Answers are highlighted in yellow: Solution: 5) Particulars Sales (240*15)+(290*8)+(315*12) Less: Cost of Goods sold (3400+1900+1000) Gross Profit (1980+2000+1900+1020) $ $ Spec. Id. FIFO LIFO WA 9,700$ 9,700$ 9,700$ 9,700 6,350 $ 6,300 $ 6,900 $ 6,629 (9280/49) *35 3,350 $ 3,400 $ 2,800 $ 3,071 $ Working note: Spec. Date Mar.01 Mar.09 Mar.22 Mar.30 Goods purchased Cost of Goods Sold Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost 20$ 170$ 3,400 19 $ 170.00 $ 3,230 10 $ 190 $ 1,900 8 $ 190.00 $ 1,520 10 $ 200$ 2,000 8 $ 200.00 $ 1,600 9 $ 220 $ 1,980 $ 49 $ 9,280 35 $ 6,350