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				Unit Cost				Total Cost
March	1		Beginning inventory		20			$	175				$	3,500
March	5		Sale ($250 each)		15
March	9		Purchase		10				195					1,950
March	17		Sale ($300 each)		8
March	22		Purchase		10				205					2,050
March	27		Sale ($325 each)		12
March	30		Purchase		8				225					1,800
													$	9,300

For 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.

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

	Ending inventory Cost of goods sold

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

	Ending inventory Cost of goods sold

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

	Ending inventory Cost of goods sold

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

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

7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.

Journal entry worksheet

• Record the LIFO adjustment.

	Date General Journal Debit Credit March 31

Answer 1