Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March 2012. Assume Greg's uses periodic inventory system:
| Date |
Transactions |
Units |
Cost per Unit |
Total Cost |
| March 1 |
Beginning inventory |
20 |
$200 |
$4,000 |
| March 5 |
Sale ($300 each) |
15 |
|
|
| March 9 |
Purchase |
10 |
220 |
2,200 |
| March 17 |
Sale ($350 each) |
8 |
|
|
| March 22 |
Purchase |
10 |
230 |
2,300 |
| March 27 |
Sale ($375 each) |
12 |
|
|
| March 30 |
Purchase |
8 |
250 |
2,000 |
|
|
|
|
|
|
|
|
|
$10,500
|
Calculate ending inventory and cost of goods sold at March 31, 2012, 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.
Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2012.
Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2012.
Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2012.(Round the intermediate calculations to 2 decimal places.)
Calculate sales revenue and gross profit with each of the four methods-Specific Identification, FIFO, LIFO, and Weighted-Average Cost.
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 particular transaction, select "No journal entry required" in the first account field.)