Question
Required information [The following information applies to the questions displayed below.] Gregs Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike
Required information
[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 | $ | 180 | $ | 3,600 | |||||||||
March | 5 | Sale ($260 each) | 15 | |||||||||||||
March | 9 | Purchase | 10 | 200 | 2,000 | |||||||||||
March | 17 | Sale ($310 each) | 8 | |||||||||||||
March | 22 | Purchase | 10 | 210 | 2,100 | |||||||||||
March | 27 | Sale ($335 each) | 12 | |||||||||||||
March | 30 | Purchase | 7 | 230 | 1,610 | |||||||||||
$ | 9,310 | |||||||||||||||
Required:
1 a) Calculate ending inventory and cost of goods sold at March 31, using 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.
Ending Inventory:
Cost of goods sold:
b) Using FIFO, calculate ending inventory and cost of goods sold at March 31.
Ending Inventory:
Cost of goods sold:
c) Using LIFO, calculate ending inventory and cost of goods sold at March 31.
Ending Inventory:
Cost of goods sold:
d ) Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)
Ending inventory:
cost of goods sold:
e) Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places).
f) If Gregs Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Specific Identification FIFO LIFO Weighted- average cost Sales revenue Gross profit Journal entry worksheet Record the LIFO adjustment. Note: Enter debits before credits. Date General Journal Debit Credit March 31 Record entry Clear entry View general journal
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