Gregs Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month
Question:
Greg’s 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 | Cost per Unit | Total Cost | |
March 1 | Beginning inventory | 20 | $200 | $ | 4,000 |
March 5 | Sale ($300 each) | 15 | |||
March 9 | Purchase | 10 | 220 | 2,200 | |
March 17 | Sale ($350 each) | 8 | |||
March 22 | Purchase | 10 | 230 | 2,300 | |
March 27 | Sale ($375 each) | 12 | |||
March 30 | Purchase | 8 | 250 | 2,000 | |
$ | 10,500 | ||||
rev: 02_28_2017_QC_CS-80932
1.
value:
9.16 points
Required information
Required:
1. 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.
References
eBook & Resources
WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.
Check my work
2.
value:
9.16 points
Required information
2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.
References
eBook & Resources
WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.
Check my work
3.
value:
9.16 points
Required information
3. Using LIFO, calculate ending inventory and cost of goods sold at March 31.
References
eBook & Resources
WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.
Check my work
4.
value:
9.16 points
Required information
4. 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.)
References
eBook & Resources
WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.
Check my work
5.
value:
9.16 points
Required information
5. Calculate sales revenue and gross profit under each of the four methods.(Round weighted-average cost amounts to 2 decimal places.)
References
eBook & Resources
WorksheetLearning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Difficulty: 3 HardLearning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost methods.
Check my work
6.
value:
9.20 points
Required information
6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?
FIFO
LIFO
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann