Calculation of ending inventory and cost of goods sold using the specific identification method: Ending inventory: Cost of goods sold:
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Bobby's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Bobby's Tennis Shop uses a periodic inventory system. Date Transactions Units Unit Cost Total Cost August 1 Beginning inventory 8 $140 $1,120 August 4 Sale ($125 each) 5 August 11 Purchase 10 $130 $1,300 August 13 Sale ($140 each) 8 August 20 Purchase 10 $120 $1,200 August 26 Sale ($150 each) 11 August 29 Purchase 10 $110 $1,100 $4,720 For the specific identification method, the August 4 sale consists of rackets from the beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from the beginning inventory and 10 rackets from the August 20 purchase. Required: 1. Calculate ending inventory and cost of goods sold at August 31, using the specific identification method. 2. Using FIFO, calculate ending inventory and cost of goods sold at August 31. 3. Using LIFO, calculate ending inventory and cost of goods sold at August 31. 4. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 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 Bobby's chooses to report inventory using LIFO, record the LIFO adjustment.
Akash M.
Required information Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3,6-4,6-5) [The following information applies to the questions displayed below.] Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete's Tennis Shop uses a periodic inventory system. Date August 1 Transactions Beginning inventory Sale $215 each) Purchase Sale ($230 each) Purchase Sale ($240 each) Purchase Units 8 5 10 8 10 11 10 Unit Cost $158 Total Cost S 1,264 August August 11 August 13 August 20 August 26 August 29 148 1,480 138 1,380 128 1,280 5,404 $ For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase Problem 6-2B Part1 Required: 1.Calculate ending inventory and cost of goods sold at August 31, using the specific identification method Ending inventory Cost of goods sold 3,572 3,572
Problem 6-2A (Algo) Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4, 6-5) 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 Transactions Units Unit Cost Total Cost March 1 Beginning inventory 20 $190 $3,800 March 5 Sale ($280 each) 15 March 9 Purchase 10 210 2,100 March 17 Sale ($330 each) 8 March 22 Purchase 10 220 2,200 March 27 Sale ($355 each) 12 March 30 Purchase 8 240 1,920 $10,020 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.
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