Greg’s bicycle shop uses a periodic inventory system
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Greg’s Bicycle Shop has the following transactions related to its top-sellingMongoose mountain bike for the month of March 2015. Greg’s Bicycle Shop uses a periodic inventory system. |
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Date |
Transactions |
Units |
Cost per |
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 |
||||
References
Section BreakProblem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods [(LO3, 4, 5)
1.
value:
1.00 points
Required information
Problem 6-2A Part 1
|
Required: |
|
|
1. |
Calculate ending inventory and cost of goods sold at March 31, 2015, using 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. |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 1Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.
Check my work
2.
value:
1.00 points
Required information
Problem 6-2A Part 2
|
2. |
Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015. |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 2Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.
Check my work
3.
value:
1.00 points
Required information
Problem 6-2A Part 3
|
3. |
Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015. |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 3Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.
Check my work
4.
value:
1.00 points
Required information
Problem 6-2A Part 4
|
4. |
Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.) |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 4Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.
Check my work
5.
value:
1.00 points
Required information
Problem 6-2A Part 5
|
5. |
Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.) |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 5Learning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost flow assumptions.
Check my work
6.
value:
1.00 points
Required information
Problem 6-2A Part 6
|
6. |
Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? |
FIFO
LIFO
References
eBook & Resources
Multiple ChoiceDifficulty: Hard
Problem 6-2A Part 6Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Check my work
7.
value:
1.00 points
Required information
Problem 6-2A Part 7
|
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 journal entry required” in the first account field.) |
References
eBook & Resources
Problem ADifficulty: Hard
Problem 6-2A Part 7Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.
Check my work
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