P6-2C Nadal Athletic uses a periodic inventory system and has the following transaction related to its inventory for the month of August 2015:

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.Using FIFO, calculate ending inventory and cost of goods sold at August 31, 2015.

2.Using LIFO, calculate ending inventory and cost of goods sold at August 31, 2015.

3.Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31, 2015.

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

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

6.If Pete?s chooses to report inventory using LIFO, record the LIFO adjustment.

Chapter 06 - Inventory and Cost of Goods Sold Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) P6-2C Nadal Athletic uses a periodic inventory system and has the following transaction related to its inventory for the month of August 2015: Date Transactions August 1 August 4 August 11 August 13 August 20 August 26 August 29 Beginning inventory Sale ($150 each) Purchase Sale ($160 each) Purchase Sale ($170 each) Purchase Units 7 5 9 7 12 10 12 Cost per Unit $130 Total Cost $ 910 120 1,080 110 1,320 100 1,200 $4,510 Required:. 1. Using FIFO, calculate ending inventory and cost of goods sold at August 31, 2015. 2. Using LIFO, calculate ending inventory and cost of goods sold at August 31, 2015. 3. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31, 2015. 4. Calculate sales revenue and gross profit under each of the four methods. 5. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? Explain. 6. If Pete's chooses to report inventory using LIFO, record the LIFO adjustment. Financial Accounting, 3e 1 2014 The McGraw-Hill Companies, Inc