Question

Required information

Problem 6-2A 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.]

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			$	250				$	5,000
March	5		Sale ($400 each)		15
March	9		Purchase		10				270					2,700
March	17		Sale ($450 each)		8
March	22		Purchase		10				280					2,800
March	27		Sale ($475 each)		12
March	30		Purchase		9				300					2,700
													$	13,200

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: 04_13_2020_QC_CS-208026

Problem 6-2A Part 1

Required:

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

Ending inventory
Cost of goods sold

Answer 1

Date	Purchase	Cost of goods sold	Balance
Qty	Rate	Total	Qty	Rate	Total	Qty	Rate	Total
March 1							20	250	5000
March 5				15	250	3750	5	250	1250
March 9	10	270	2700				5	250	1250
							10	270	2700
March 17				8	270	2160	5	250	1250
							2	270	540
March 22	10	280	2800				5	250	1250
							2	270	540
							10	280	2800
March 27				4	250	1000	1	250	250
				8	280	2240	2	270	540
							2	280	560
March 30	9	300	2700				1	250	250
							2	270	540
							2	280	560
							9	300	2700
Totals	29		8200	35		9150	14		4050

Ending Inventory	$4050
Cost of Goods sold	$9150