Required information [The following information applies to the questions displayed below.] 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. Transactions Beginning inventory Sale ($320 each) Date Units Unit Cost Total Cost S 210 $ 4, 200 March 1 20 March 5 15 March Purchase 10 230 2,300 March 17 Sale ($370 each) 8 March 22 Purchase 10 240 2,400 Sale ($395 each) March 27 12 March 30 Purchase 7 260 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 information [The following information applies to the questions displayed below.] 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. Transactions Beginning inventory Sale ($320 each) Date Units Unit Cost Total Cost S 210 $ 4, 200 March 1 20 March 5 15 March Purchase 10 230 2,300 March 17 Sale ($370 each) 8 March 22 Purchase 10 240 2,400 Sale ($395 each) March 27 12 March 30 Purchase 7 260 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
5. Calculate sales revenue and gross profit under each of the four methods.
![Required information
[The following information applies to the questions displayed below.]
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.
Transactions
Beginning inventory
Sale ($320 each)
Date
Units
Unit Cost
Total Cost
March
$ 210
$ 4,200
20
March
15
March
Purchase
10
230
2,300
Sale ($370 each)
Purchase
March 17
8
March
22
10
240
2,400
Sale ($395 each)
Purchase
March 27
12
March 30
7
260
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.
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal
places.)
Specific
Identification
Weighted-
average cost
FIFO
LIFO
Sales revenue
Gross profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e5156e0-d9b4-41ce-9bdf-856d7ec834c1%2Fc347eb98-27e5-4382-a575-3a9334c4a03a%2Fqc2d696_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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.
Transactions
Beginning inventory
Sale ($320 each)
Date
Units
Unit Cost
Total Cost
March
$ 210
$ 4,200
20
March
15
March
Purchase
10
230
2,300
Sale ($370 each)
Purchase
March 17
8
March
22
10
240
2,400
Sale ($395 each)
Purchase
March 27
12
March 30
7
260
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.
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal
places.)
Specific
Identification
Weighted-
average cost
FIFO
LIFO
Sales revenue
Gross profit
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