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)
Ariana Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Ariana 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 ($340 each) Purchase Sale ($390 each) Purchase Sale ($415 each) Purchase
Units 20 15 10 8 10 12 9
Unit Cost $220
Total Cost $4,400
$240
$2,400
$250
$2,500
$270
$2,430
$11,730
If Ariana 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 Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
Record the LIFO adjustment.
Note: Enter debits before credits.
Date March 31
General Journal
Debit
Credit
Record entry
Clear entry
View general journal