Question

Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-8) [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 $195 $ 3,900 March 5 Sale ($290 each) 15 March 9 Purchase 10 215 2,150 March 17 Sale ($340 each) 8 March 22 Purchase 10 225 2,250 March 27 Sale ($365 each) 12 March 30 Purchase 7 245 1,715 $ 10,015

Required: 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.

Problem 6-2A Part 2 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.

Problem 6-2A Part 3 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. (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.)

Problem 6-2A Part 6 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

Problem 6-2A Part 7 7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the LIFO adjustment.

Answer 1