Question

rmation 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				Unit Cost				Total Cost
March	1		Beginning inventory		20			$	235				$	4,700
March	5		Sale ($370 each)		15
March	9		Purchase		10				255					2,550
March	17		Sale ($420 each)		8
March	22		Purchase		10				265					2,650
March	27		Sale ($445 each)		12
March	30		Purchase		9				285					2,565
													$	12,465

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.

rev: 02_28_2017_QC_CS-80932, 04_13_2020_QC_CS-208026

Problem 6-2A Part 1

Required:

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

.

Answer 1

	Details	Units	Unit cost	Total Cost
	Opening Balance March 1.	20	$        235.00	$             4,700.00
	Add: March 9 purchase	10	$        255.00	$             2,550.00
	Add:March 22 Purchase	10	$        265.00	$             2,650.00
	Add: March 30 purchase	9	$        285.00	$             2,565.00
A	Total Goods Available for sale	49		$          12,465.00
	Less : Sale
	March 5 sales from opening inventory	15	$        235.00	$             3,525.00
	March 17 sale from purchase of March 9	8	$        255.00	$             2,040.00
	March 27 sale from opening inventory	4	$        235.00	$                940.00
	March 27 sale from Mar 22 purchase	8	$        265.00	$             2,120.00
B	Total Sales & Cost of Goods Sold	35		$            8,625.00
	Ending Inventory=A-B	14		$             3,840.00

So Ending Inventory on March 31 =	$            3,840.00
Cost of Goods Sold of March =	$            8,625.00