Question
Required information Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) [The following
Required information
Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.] 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 | $ | 250 | $ | 5,000 | |||||||||
March | 5 | Sale ($400 each) | 15 | |||||||||||||
March | 9 | Purchase | 10 | 270 | 2,700 | |||||||||||
March | 17 | Sale ($450 each) | 8 | |||||||||||||
March | 22 | Purchase | 10 | 280 | 2,800 | |||||||||||
March | 27 | Sale ($475 each) | 12 | |||||||||||||
March | 30 | Purchase | 9 | 300 | 2,700 | |||||||||||
$ | 13,200 | |||||||||||||||
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.
rev: 04_13_2020_QC_CS-208026
Problem 6-2A Part 1
Required:
1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method.
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Ending inventory |
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Cost of goods sold |
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