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 $ 205 $ 4,100 March 5 Sale ($310 each) 15 March 9 Purchase 10 225 2,250 March 17 Sale ($360 each) 8 March 22 Purchase 10 235 2,350 March 27 Sale ($385 each) 12 March 30 Purchase 9 255 2,295 $ 10,995 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.
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 $ 205 $ 4,100 March 5 Sale ($310 each) 15 March 9 Purchase 10 225 2,250 March 17 Sale ($360 each) 8 March 22 Purchase 10 235 2,350 March 27 Sale ($385 each) 12 March 30 Purchase 9 255 2,295 $ 10,995 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 | $ | 205 | $ | 4,100 | |||||||||
| March | 5 | Sale ($310 each) | 15 | |||||||||||||
| March | 9 | Purchase | 10 | 225 | 2,250 | |||||||||||
| March | 17 | Sale ($360 each) | 8 | |||||||||||||
| March | 22 | Purchase | 10 | 235 | 2,350 | |||||||||||
| March | 27 | Sale ($385 each) | 12 | |||||||||||||
| March | 30 | Purchase | 9 | 255 | 2,295 | |||||||||||
| $ | 10,995 | |||||||||||||||
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.
Expert Solution
Introduction :
In Specific Identification method we can easily find that Units which are sold are from which lot and accordingly we have to find COGS and Closing Inventory as follows :
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