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.) ("The subparts to be solved.") *Ending Inventory and Cost of goods sold only. 5. Calculate sales revenue and gross profit under each of the four methods.(Round weighted-average cost amounts to 2 decimal places.) **photo attached ("The subparts to be solved.") *Photo attached 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?("The subparts to be solved.")

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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     $ 175       $ 3,500    
March 5   Sale ($250 each)   15                      
March 9   Purchase   10       195         1,950    
March 17   Sale ($300 each)   8                      
March 22   Purchase   10       205         2,050    
March 27   Sale ($325 each)   12                      
March 30   Purchase   8       225         1,800    
                          $ 9,300    
 

For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase.

Required:

***Only Ending Inventory & Cost of Goods Sold is needed for questions 1-4

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.) ("The subparts to be solved.") *Ending Inventory and Cost of goods sold only.

5. Calculate sales revenue and gross profit under each of the four methods.(Round weighted-average cost amounts to 2 decimal places.) **photo attached ("The subparts to be solved.") *Photo attached

6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?("The subparts to be solved.")

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.)("The subparts to be solved.")

   a. Record the LIFO adjustment.

5. Calculate sales revenue and gross profit under each of the four methods. (Round welghted-average cost amounts to 2 decimal
places.)
Specific
Identification
Weighted-
average cost
FIFO
LIFO
Sales revenue
Cost of goods sold
Gross profit
Transcribed Image Text:5. Calculate sales revenue and gross profit under each of the four methods. (Round welghted-average cost amounts to 2 decimal places.) Specific Identification Weighted- average cost FIFO LIFO Sales revenue Cost of goods sold Gross profit
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