Greg's Bicycle Shop uses a periodic inventory system
SuperClassGreg’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 | 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.
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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.
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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.
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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.
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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.
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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.
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