Date March 1 Transactions Beginning inventory Units 20 Unit Cost Total Cost $240 $4,800 March 5 Sale ($380 each) 15 March 9 Purchase 10 260 2,600 March 17 Sale ($430 each) 8 March 22 Purchase 10 270 2,700 March 27 March 30 Sale ($455 each) Purchase 12 7 290 2,030 $12,130 For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at March 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 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 George Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average unit cost amou decimal places.) Specific Identification FIFO LIFO Weighted- average Cost Sales revenue Gross profit < Required 4 Required 6 >
Date March 1 Transactions Beginning inventory Units 20 Unit Cost Total Cost $240 $4,800 March 5 Sale ($380 each) 15 March 9 Purchase 10 260 2,600 March 17 Sale ($430 each) 8 March 22 Purchase 10 270 2,700 March 27 March 30 Sale ($455 each) Purchase 12 7 290 2,030 $12,130 For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase. Required: 1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at March 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 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 George Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average unit cost amou decimal places.) Specific Identification FIFO LIFO Weighted- average Cost Sales revenue Gross profit < Required 4 Required 6 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i need the answer quickly
Transcribed Image Text:Date
March 1
Transactions
Beginning inventory
Units
20
Unit Cost
Total Cost
$240
$4,800
March 5
Sale ($380 each)
15
March 9
Purchase
10
260
2,600
March 17
Sale ($430 each)
8
March 22
Purchase
10
270
2,700
March 27
March 30
Sale ($455 each)
Purchase
12
7
290
2,030
$12,130
For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March
17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from
beginning inventory and eight bikes from the March 22 purchase.
Required:
1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method.
2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.
3. Using LIFO, calculate ending inventory and cost of goods sold at March 31.
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 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 George Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO
adjustment.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3 Required 4
Required 5
Required 6
Required 7
Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average unit cost amou
decimal places.)
Specific
Identification
FIFO
LIFO
Weighted-
average Cost
Sales revenue
Gross profit
< Required 4
Required 6 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Introduction of inventory valuation
VIEWStep 2: Requirement 1 - Computation of cost of goods sold and ending inventory under specific identification
VIEWStep 3: Requirement 2 - Computation of cost of goods sold and ending inventory under FIFO
VIEWStep 4: Requirement 3 - Computation of cost of goods sold and ending inventory under LIFO
VIEWSolution
VIEW
Step by step
Solved in 5 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education