Question

In: Accounting

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the...

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 Unit Cost Total Cost
March 1 Beginning inventory 20 $ 195 $ 3,900
March 5 Sale ($290 each) 15
March 9 Purchase 10 215 2,150
March 17 Sale ($340 each) 8
March 22 Purchase 10 225 2,250
March 27 Sale ($365 each) 12
March 30 Purchase 7 245 1,715
$ 10,015

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.

Ending inventory
Cost of goods sold

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

Ending inventory
Cost of goods sold

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

Ending inventory
Cost of goods sold

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.)

Ending inventory
Cost of goods sold

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

Specific Identification FIFO LIFO Weighted-average cost
Sales revenue
Gross profit

Solutions

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[The following information applies to the questions displayed below.] 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    $160       $ 3,200        March 5 Sale ($220 each) 15      March 9 Purchase 10    180       1,800        March 17 Sale ($270 each) 8      March 22 Purchase 10...
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