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 And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 2PB: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...
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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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