Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $ 175 $ 3,500 March 5 Sale ($250 each) 15 March 9 Purchase 10 195 1,950 March 17 Sale ($300 each) 8 March 22 Purchase 10 205 2,050 March 27 Sale ($325 each) 12 March 30 Purchase 8 225 1,800 $ 9,300 For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase. Required: ***Only Ending Inventory & Cost of Goods Sold is needed for questions 1-4 1. Calculate ending inventory and cost of goods sold on 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.
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
| Date | Transactions | Units | Unit Cost | Total Cost | ||||||||||||
| March | 1 | Beginning inventory | 20 | $ | 175 | $ | 3,500 | |||||||||
| March | 5 | Sale ($250 each) | 15 | |||||||||||||
| March | 9 | Purchase | 10 | 195 | 1,950 | |||||||||||
| March | 17 | Sale ($300 each) | 8 | |||||||||||||
| March | 22 | Purchase | 10 | 205 | 2,050 | |||||||||||
| March | 27 | Sale ($325 each) | 12 | |||||||||||||
| March | 30 | Purchase | 8 | 225 | 1,800 | |||||||||||
| $ | 9,300 | |||||||||||||||
For the specific identification method, the March 5 sale consists of bikes from the beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from the beginning inventory and eight bikes from the March 22 purchase.
Required:
***Only Ending Inventory & Cost of Goods Sold is needed for questions 1-4
1. Calculate ending inventory and cost of goods sold on 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. (Round your intermediate and final answers to 2 decimal places.)
5. Calculate sales revenue and gross profit under each of the four methods.(Round weighted-average cost amounts to 2 decimal places.) **photo attached
6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?
7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No
a. Record the LIFO adjustment.
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