Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight of these cycles at the following costs:
| Purchase Date |
Units Purchased |
Unit Cost |
Total Cost |
| July 1 |
|
2 |
|
$ |
4,950 |
|
$ |
9,900 |
|
| July 22 |
|
3 |
|
|
5,000 |
|
|
15,000 |
|
| Aug. 3 |
|
3 |
|
|
5,100 |
|
|
15,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
$ |
40,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
On July 28, Speed World sold four Kazomma 900 dirt bikes to the Vince Wilson racing team. The remaining four bikes remained in inventory at September 30, the end of Speed World's fiscal year.
|
| Assume that Speed World uses a perpetual inventory system. |
|
|
|
| a(1) |
Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using average cost method.
|
|
|
| Cost of goods sold |
$ |
| Ending inventory |
$ |
|
| a(2) |
Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using FIFO method.
|
|
|
| Cost of goods sold |
$ |
| Ending inventory |
$ |
|
| a(3) |
Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using LIFO method.
|
| |
|
| Cost of goods sold |
$ |
| Ending inventory |
$ |
|