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Billle'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 August 1 August 4 August 11 August 13 August 20 August 26 August 29 Transactions Beginning inventory Sale ($135 each) Purchase Sale ($150 each) Purchase Sale ($160 each) Purchase Units 5 10 8 10 11 12 Ending inventory Cost of goods sold Unit Cost $142 132 122 112 Total Cost $1,136 Complete this question by entering your answers in the tabs below. 1,320 1,220 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. 1,344 $5,020 Required: 1. Calculate ending Inventory and cost of goods sold at August 31, using the specific Identification method. 2. Using FIFO, calculate ending Inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending Inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending Inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending Inventory? 7. If Billie's chooses to report Inventory using LIFO, record the LIFO adjustment. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate ending inventory and cost of goods sold at August 31, using the specific identification method.

Billle'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 August 1 August 4 August 11 August 13 August 20 August 26 August 29 Transactions Beginning inventory Sale ($135 each) Purchase Sale ($150 each) Purchase Sale ($160 each) Purchase Units 5 10 8 10 11 12 Ending inventory Cost of goods sold Unit Cost $142 132 122 112 Total Cost $1,136 Complete this question by entering your answers in the tabs below. 1,320 1,220 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. 1,344 $5,020 Required: 1. Calculate ending Inventory and cost of goods sold at August 31, using the specific Identification method. 2. Using FIFO, calculate ending Inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending Inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending Inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending Inventory? 7. If Billie's chooses to report Inventory using LIFO, record the LIFO adjustment. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate ending inventory and cost of goods sold at August 31, using the specific identification method.

FINANCIAL ACCOUNTING
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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Problem 6-2B (Algo) Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) 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 August 1 August 4 August 11 August 13 August 20 August 26 August 29 Transactions Beginning inventory Sale ($135 each) Purchase Sale ($150 each) Purchase Sale ($160 each) Purchase Units 8 5 10 8 10 11 12 Unit Cost $142 132 122 112 Total Cost $1,136 1,320 Complete this question by entering your answers in the tabs below. 1,220 1,344 $5,020 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. Required: 1. Calculate ending Inventory and cost of goods sold at August 31, using the specific identification method. 2. Using FIFO, calculate ending Inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending Inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending Inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending Inventory? 7. If Billie's chooses to report Inventory using LIFO, record the LIFO adjustment. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. Ending inventory Cost of goods sold
Transcribed Image Text:Problem 6-2B (Algo) Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) 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 August 1 August 4 August 11 August 13 August 20 August 26 August 29 Transactions Beginning inventory Sale ($135 each) Purchase Sale ($150 each) Purchase Sale ($160 each) Purchase Units 8 5 10 8 10 11 12 Unit Cost $142 132 122 112 Total Cost $1,136 1,320 Complete this question by entering your answers in the tabs below. 1,220 1,344 $5,020 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. Required: 1. Calculate ending Inventory and cost of goods sold at August 31, using the specific identification method. 2. Using FIFO, calculate ending Inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending Inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending Inventory and cost of goods sold at August 31. 5. Calculate sales revenue and gross profit under each of the four methods. 6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending Inventory? 7. If Billie's chooses to report Inventory using LIFO, record the LIFO adjustment. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. Ending inventory Cost of goods sold
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