Urban Bicycle , a cycling store has a beginning inventory of one bi-level touring bicycle 1, for which it paid $2,500. Suppose that during the period the store purchases bi-level touring bicycle 2 for $2,900 and bi-level touring bicycle 3 for $3,000, and that it sells one bicycle for $5,500. The three bicycles are physically identical; the store acquired them at different times as their acquisition costs changed, so only their costs differ.

Suppose the cycling store uses the weighted-average cost-flow assumption. The cost of goods sold is _____, and the ending inventory is _____.

Answers:

$2,900; $5,500

$2,500; $5,900

$3,000; $5,400

$2,800; $5,600

cannot be determined with the information given