Nadal Athletic has the following transactions related to its inventory for the month of August 2021:

Date	Transactions	Units		Cost per Unit				Total Cost
August 1	Beginning inventory	7		$	130			$	910
August 4	Sale ($150 each)	5
August 11	Purchase	9			120				1,080
August 13	Sale ($160 each)	7
August 20	Purchase	12			110				1,320
August 26	Sale ($170 each)	10
August 29	Purchase	12			100				1,200
								$	4,510

Required:

1. Calculate ending inventory and cost of goods sold at August 31, 2021, using the specific identification method. The August 4 sale consists of units from beginning inventory, the August 13 sale consists of units from the August 11 purchase, and the August 26 sale consists of two units from beginning inventory and eights units from the August 20 purchase.
2. Using FIFO, calculate ending inventory and cost of goods sold at August 31, 2021.
3. Using LIFO, calculate ending inventory and cost of goods sold at August 31, 2021.
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31, 2021.
5. Calculate sales revenue and gross profit under each of the four methods.
6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?
7. If Nadal chooses to report inventory using LIFO, record the LIFO adjusting entry.

Ending inventory	not attempted
Cost of goods sold	not attempted

required for 1-4

Specific Identification	FIFO	LIFO	Weighted-average cost
Sales revenue	not attempted	not attempted	not attempted	not attempted
Gross profit	not attempted	not attempted	not attempted

required for 5

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

	LIFOradio button unchecked FIFOradio button unchecked

required for 6

No	Transaction	General Journal	Debit	Credit

required for 7