Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March 2015. Greg's Bicycle Shop uses a periodic inventory system.

Date

Transactions

Units

Cost per
Unit

Total Cost

March 1

Beginning inventory

20

$240

$

4,800

March 5

Sale ($380 each)

15

March 9

Purchase

10

260

2,600

March 17

Sale ($430 each)

8

March 22

Purchase

10

270

2,700

March 27

Sale ($455 each)

12

March 30

Purchase

7

290

2,030

$

12,130

Required:
1.	Calculate ending inventory and cost of goods sold at March 31, 2015, 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.

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

3.

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

4.

Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)

5.	Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)

 

Answer rating: 100% (QA)

To calculate the ending inventory and cost of goods sold using different inventory valuation methods lets go through each method step by step 1 Specif... View the full answer