[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 $ 160 $ 1,280
August 4 Sale ($225 each) 5
August 11 Purchase 10 150 1,500
August 13 Sale ($240 each) 8
August 20 Purchase 10 140 1,400
August 26 Sale ($250 each) 11
August 29 Purchase 11 130 1,430
$ 5,610
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.
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