Problem $6-2$B $($Algo$)$ Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for

four inventory methods $($L$06-3,6-4,6-5)$

Billie's Tennis Shop has the following transactions related to its top$-$selling Wilson tennis racket for the month of August. Billie's Tennis

Shop uses a periodic inventory system.

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:

Calculate ending inventory and cost of goods sold at August $31,$ using the specific identification method.

Using FIFO, calculate ending inventory and cost of goods sold at August $31.$

Using LIFO, calculate ending inventory and cost of goods sold at August $31.$

Using weighted$-$average cost, calculate ending inventory and cost of goods sold at August $31.$

Calculate sales revenue and gross profit under each of the four methods.

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

If Billie's chooses to report inventory using LIFO, record the LIFO adjustment.

Complete this question by entering your answers in the tabs below.

Calculate ending inventory and cost of goods sold at August $31,$ using the specific identification method.

Ending inventory

Cost of goods sold