3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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
Beginning
inventory
August 1
8
$146
$
1,168
August 4
August 11
August 13
August 20
August 26
August 29
Sale ($155 each)
Purchase
5
10
136
1,360
Sale ($170 each)
Purchase
8
10
126
1,260
Sale ($180 each)
11
1,160
2$
Purchase
10
116
4,948
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.
3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.
Ending inventory
Cost of goods sold](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F592012b8-ea94-4617-b9bc-5287828e50e3%2F0361abbd-44db-4139-85a3-b41b2fd20618%2Fkj1apui_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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
Beginning
inventory
August 1
8
$146
$
1,168
August 4
August 11
August 13
August 20
August 26
August 29
Sale ($155 each)
Purchase
5
10
136
1,360
Sale ($170 each)
Purchase
8
10
126
1,260
Sale ($180 each)
11
1,160
2$
Purchase
10
116
4,948
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.
3. Using LIFO, calculate ending inventory and cost of goods sold at August 31.
Ending inventory
Cost of goods sold
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