In: Accounting
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system.
Date | Transactions | Units | Unit Cost | Total Cost | |||||||||||
August | 1 | Beginning inventory | 8 | $ | 152 | $ | 1,216 | ||||||||
August | 4 | Sale ($185 each) | 5 | ||||||||||||
August | 11 | Purchase | 10 | 142 | 1,420 | ||||||||||
August | 13 | Sale ($200 each) | 8 | ||||||||||||
August | 20 | Purchase | 10 | 132 | 1,320 | ||||||||||
August | 26 | Sale ($210 each) | 11 | ||||||||||||
August | 29 | Purchase | 10 | 122 | 1,220 | ||||||||||
$ | 5,176 | ||||||||||||||
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.