Calculate ending inventory and cost of goods


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Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August 2012:

Date Transactions Units Cost per Unit Total Cost
August 1 Beginning inventory 17 $160 $2,720
August 4 Sale ($180 each) 12
August 11 Purchase 12 150 1,800
August 13 Sale ($185 each) 14
August 20 Purchase 10 130 1,300
August 26 Sale ($205 each) 7
August 29 Purchase 100 120 1,200

Total $7,020

a. Calculate ending inventory and cost of goods sold at August 31, 2012, using the specific identification method. The August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of 3 rackets and 11 rackets from the August 11 purchase, and the August 26 sale consists of 1 racket from beginning inventory and 6 rackets from the August 20 purchase.

b. Using FIFO, calculate ending inventory and cost of goods sold at August 31, 2012.

c. Using LIFO, calculate ending inventory and cost of goods sold at August 31, 2012.

d. Using weighted-average cost, calculate ending inventory and cost of goods sold at August 31, 2012. (Round the intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)

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Accounting Basics: Calculate ending inventory and cost of goods
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