Greg's Bicycle Shop Uses A Periodic Inventory System

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.

 

  Date Transactions Units Cost per
Unit
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.

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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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