Question

Required information [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. Date Transactions Units Unit Cost March Total Cost 1 Beginning inventory 20 March 5 $170 Sale ($240 each) $3,400 15 March Purchase 10 190 1,900 March 17 Sale ($290 each) B March 22 Purchase 10 March 27 Sale (5315 each) 2,000 Purchase 9 220 1,980 $9, 280 9 200 March 30 12 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. 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

Answer 1

Cost of goods sold (under specific identification method) :
Sale Date (a)	Unit (b)	Cost at $ (c )	COGS (d = b x c)	Used of purchase
March 5th	15	170	2,550	Op.
March 17th	8	190	1,520	Mar-09
March 27th	4	170	680	Op.
March 27th	8	200	1,600	Mar-22
COMS	35		6,350
Cost of goods sold as per LIFO :
Sale Date (a)	Unit (b)	Cost at $ (c )	COGS (d = b x c)	Used of purchase
March 5th	15	170	2,550	Op.
March 17th	8	190	1,520	Mar-09
March 27th	2	190	380	Mar-09
March 27th	10	200	2,000	Mar-22
COMS	35		6,450
Lower cost of goods sold recognised by $	100
($ 6,450 - 6,350)
Adjustments Entry :		$	$
Cost of goods sold		100
Inventory			100