Richies Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Richies Tennis Shop uses a periodic inventory system.

Date	Transactions	Units	Unit Cost	Total Cost
August 1	Beginning inventory	8	$159	$1,272
August 4	Sale ($220 each)	5
August 11	Purchase	10	149	1,490
August 13	Sale ($235 each)	8
August 20	Purchase	10	139	1,390
August 26	Sale ($245 each)	11
August 29	Purchase	12	129	1,548
				$5,700

For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.

Required:

1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods.

	Specific Identification	FIFO	LIFO	Weighted-Average Cost
Sales revenue
Gross profit

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

7. If Richies chooses to report inventory using LIFO, record the LIFO adjustment.

Record the LIFO adjustment.

Date	General Journal	Debit	Credit
August 31