Question

Help Save [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. 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 Units 20 15 10 8 10 12 9 190 1,900 R4 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. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. Ending inventory Cost of goods sold

Answer 1

1 Ending Inventory Cost of goods sold $2,930 $6,350 Specific identification inventory costing method Goods Available for sale Cost of Goods sold Total Date Activity Quantity Unit Cost Units sold Unit Cost COGS Cost 20 19 10 March 1 Beginning inventory March 9 Purchase March 22 Purchase March 30 Purchase Totals 8 $170 $190 $200 $220 Inventory on Hand Ending Unit Units Inventory Cost Value 1 $170 $170 2 $190 $3801 2 $200 $400 9 $220 $1,980 14 $2,930 $3,400 $1,900 $2,000 $1,980 $9,280 $170 $190 $200 $3,230 $1,520 $1,600 10 8 9 49 35 $6,350 Reconciliation: Opening stock Add: Purchase $3,400 $5,880 $9,280 $2,930 $6,350 Less: Closing stock Cost of Goods sold