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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 $ 170 $ 3,400
March 5 Sale ($240 each) 15
March 9 Purchase 10 190 1,900
March 17 Sale ($290 each) 8
March 22 Purchase 10 200 2,000
March 27 Sale ($315 each) 12
March 30 Purchase 9 220 1,980
$ 9,280

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.

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

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

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

Solutions

Expert Solution

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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...
[The following information applies to the questions displayed below.] Greg’s Bicycle Shop has the following transactions...
[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...
[The following information applies to the questions displayed below.] Greg’s Bicycle Shop has the following transactions...
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