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 Unit Cost Total Cost August 1 Beginning inventory 8 $ 149 $ 1,192 August 4 Sale ($170 each) 5 August 11 Purchase 10 139 1,390 August 13 Sale ($185 each) 8 August 20 Purchase 10 129 1,290 August 26 Sale ($195 each) 11 August 29 Purchase 10 119 1,190 $ 5,062 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.

Required:

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

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

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

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.)

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

6. If Pete’s chooses to report inventory using LIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1