Billie’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Billie’s Tennis Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost August 1 Beginning inventory 8 $158 $1,264 August 4 Sale ($215 each) 5 August 11 Purchase 10 148 1,480 August 13 Sale ($230 each) 8 August 20 Purchase 10 138 1,380 August 26 Sale ($240 each) 11 August 29 Purchase 10 128 1,280 $5,404 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. 1.Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31. 2. Calculate sales revenue and gross profit under each of the four methods. 3. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? 4. If Billie’s chooses to report inventory using LIFO, record the LIFO adjustment. NEED ANSWER FOR ALL OR SKIP PLEASE DO NOT SAY ABOUT YOUR GUIDELINES PROVIDE COMPLETE CORRECT WELL EXPLAINED FORMULATED ANSWER FOR ALL PARTS

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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Billie’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Billie’s Tennis Shop uses a periodic inventory system.

Date	Transactions	Units	Unit Cost	Total Cost
August 1	Beginning inventory	8	$158	$1,264
August 4	Sale ($215 each)	5
August 11	Purchase	10	148	1,480
August 13	Sale ($230 each)	8
August 20	Purchase	10	138	1,380
August 26	Sale ($240 each)	11
August 29	Purchase	10	128	1,280
				$5,404

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.

1.Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31.
2. Calculate sales revenue and gross profit under each of the four methods.
3. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?
4. If Billie’s chooses to report inventory using LIFO, record the LIFO adjustment.

NEED ANSWER FOR ALL OR SKIP PLEASE DO NOT SAY ABOUT YOUR GUIDELINES PROVIDE COMPLETE CORRECT WELL EXPLAINED FORMULATED ANSWER FOR ALL PARTS

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