Nadal Athletic uses a periodic inventory system and has the following transactions related to its inventory...

 

Transcribed Image Text:

Nadal Athletic uses a periodic inventory system and has the following transactions related to its inventory for the month of August 2024: Date August 1 Transactions Beginning inventory Units 8 Unit Cost Total Cost $153 $1,224 August 4 Sale ($190 each) 5 August 11 Purchase 10 143 1,430 August 13 Sale ($205 each) 8 August 20 August 26 August 29 Purchase 10 133 1,330 Sale ($215 each) 11 Purchase 12 123 1,476 $5,460 For the specific identification method, the August 4 sale consists of units from beginning inventory, the August 13 sale consists of units from the August 11 purchase, and the August 26 sale consists of one unit from beginning inventory and 10 units 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. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 7. If Nadal chooses to report inventory using LIFO, record the LIFO adjustment. Nadal Athletic uses a periodic inventory system and has the following transactions related to its inventory for the month of August 2024: Date August 1 Transactions Beginning inventory Units 8 Unit Cost Total Cost $153 $1,224 August 4 Sale ($190 each) 5 August 11 Purchase 10 143 1,430 August 13 Sale ($205 each) 8 August 20 August 26 August 29 Purchase 10 133 1,330 Sale ($215 each) 11 Purchase 12 123 1,476 $5,460 For the specific identification method, the August 4 sale consists of units from beginning inventory, the August 13 sale consists of units from the August 11 purchase, and the August 26 sale consists of one unit from beginning inventory and 10 units 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. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 7. If Nadal chooses to report inventory using LIFO, record the LIFO adjustment.

Answer rating: 100% (QA)

1 Calculating ending inventory and cost of goods sold at August 31 using the specific identification ... View the full answer