Gregs 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				Total Cost
March	1		Beginning inventory		20			$	235				$	4,700
March	5		Sale ($370 each)		15
March	9		Purchase		10				255					2,550
March	17		Sale ($420 each)		8
March	22		Purchase		10				265					2,650
March	27		Sale ($445 each)		12
March	30		Purchase		9				285					2,565
													$	12,465

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.

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

Ending Inventory
Cost of Goods Sold

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

Ending Inventory
Cost of Goods Sold

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

Ending Inventory
Cost of Goods Sold

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31.

Ending Inventory
Cost of Goods Sold

5. Calculate sales revenue and gross profit under each of the four methods.

	Specific Identification	FIFO	LIFO	Weighed-Average
Sales Revenue
Gross Profit

6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

FIFO or LIFO

7. If Gregs Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.