Homework Help is Here – Start Your Trial Now!
Business
Accounting
George Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. George Bicycle Shop uses a periodic inventory system. Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory Sale ($320 each) Purchase Sale ($370 each) Purchase Sale ($395 each) Purchase Units 20 15 10 8 10 12 7 Unit Cost $210 230 240 260 Total Cost $4,200 2,300 2,400 1,820 $10,720 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.

George Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. George Bicycle Shop uses a periodic inventory system. Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory Sale ($320 each) Purchase Sale ($370 each) Purchase Sale ($395 each) Purchase Units 20 15 10 8 10 12 7 Unit Cost $210 230 240 260 Total Cost $4,200 2,300 2,400 1,820 $10,720 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Topic Video
Question

6-5e use same chart

### George Bicycle Shop Inventory Transactions for March **Context:** George Bicycle Shop deals in Mongoose mountain bikes. They follow a periodic inventory system for managing transactions. Below are the details for transactions in March, specifically focusing on inventory, purchases, and sales. **Transactions:** | Date | Transaction | Units | Unit Cost | Total Cost | |----------|----------------------|-------|-----------|------------| | March 1 | Beginning Inventory | 20 | $210 | $4,200 | | March 5 | Sales ($320 each) | 15 | - | - | | March 9 | Purchase | 10 | $230 | $2,300 | | March 17 | Sales ($370 each) | 12 | - | - | | March 22 | Purchase | 12 | $240 | $2,400 | | March 27 | Sales ($395 each) | 12 | - | - | | March 30 | Purchase | 7 | $260 | $1,820 | | **Total** | | | | **$10,720**| **Specific Identification Method Details:** For March: - The March 5 sale comprises bikes from the beginning inventory. - The March 17 sale comprises bikes from the March 9 purchase. - The March 27 sale comprises four bikes from the beginning inventory and eight from the March 22 purchase. **Required Calculations:** 1. **Specific Identification Method**: - Calculate ending inventory and cost of goods sold (COGS) as of March 31. 2. **FIFO Method**: - Calculate ending inventory and COGS as of March 31. 3. **LIFO Method**: - Calculate ending inventory and COGS as of March 31. 4. **Weighted-Average Cost Method**: - Calculate ending inventory and COGS as of March 31. 5. **Sales Revenue and Gross Profit**: - Calculate these under each of the four methods. 6. **FIFO vs LIFO**: - Compare to determine the more meaningful measure of ending inventory. 7. **LIFO Adjustment**: - Record the LIFO adjustment if the shop chooses to report inventory using LIFO. **Template for Calculation Results:** 1
Transcribed Image Text:### George Bicycle Shop Inventory Transactions for March **Context:** George Bicycle Shop deals in Mongoose mountain bikes. They follow a periodic inventory system for managing transactions. Below are the details for transactions in March, specifically focusing on inventory, purchases, and sales. **Transactions:** | Date | Transaction | Units | Unit Cost | Total Cost | |----------|----------------------|-------|-----------|------------| | March 1 | Beginning Inventory | 20 | $210 | $4,200 | | March 5 | Sales ($320 each) | 15 | - | - | | March 9 | Purchase | 10 | $230 | $2,300 | | March 17 | Sales ($370 each) | 12 | - | - | | March 22 | Purchase | 12 | $240 | $2,400 | | March 27 | Sales ($395 each) | 12 | - | - | | March 30 | Purchase | 7 | $260 | $1,820 | | **Total** | | | | **$10,720**| **Specific Identification Method Details:** For March: - The March 5 sale comprises bikes from the beginning inventory. - The March 17 sale comprises bikes from the March 9 purchase. - The March 27 sale comprises four bikes from the beginning inventory and eight from the March 22 purchase. **Required Calculations:** 1. **Specific Identification Method**: - Calculate ending inventory and cost of goods sold (COGS) as of March 31. 2. **FIFO Method**: - Calculate ending inventory and COGS as of March 31. 3. **LIFO Method**: - Calculate ending inventory and COGS as of March 31. 4. **Weighted-Average Cost Method**: - Calculate ending inventory and COGS as of March 31. 5. **Sales Revenue and Gross Profit**: - Calculate these under each of the four methods. 6. **FIFO vs LIFO**: - Compare to determine the more meaningful measure of ending inventory. 7. **LIFO Adjustment**: - Record the LIFO adjustment if the shop chooses to report inventory using LIFO. **Template for Calculation Results:** 1
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS