Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March 2015. Greg's Bicycle Shop uses a periodic inventory system.
| Date |
Transactions |
Units |
Cost per
Unit |
Total Cost |
| March 1 |
Beginning inventory |
20 |
$240 |
$ |
4,800 |
| March 5 |
Sale ($380 each) |
15 |
|
|
|
| March 9 |
Purchase |
10 |
260 |
|
2,600 |
| March 17 |
Sale ($430 each) |
8 |
|
|
|
| March 22 |
Purchase |
10 |
270 |
|
2,700 |
| March 27 |
Sale ($455 each) |
12 |
|
|
|
| March 30 |
Purchase |
7 |
290 |
|
2,030 |
|
|
|
|
|
|
|
|
|
|
$ |
12,130 |
|
|
|
|
|
|
| Required: |
| 1. |
Calculate ending inventory and cost of goods sold at March 31, 2015, 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.
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| 2. |
Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015. |
| 3. |
Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
4.
Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
| 5. |
Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)
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