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
DateTransactionsUnitsCost per
UnitTotal Cost
August 1Beginning inventory8 $144 $1,152
August 4Sale ($145 each)5
August 11Purchase10 134 1,340
August 13Sale ($160 each)8
August 20Purchase10 124 1,240
August 26Sale ($170 each)11
August 29Purchase11 114 1,254
$4,986
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.
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.