Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Greg’s Bicycle Shop has the following transactions related to its top-selling Mo

ID: 2446057 • Letter: G

Question

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March 2015. Greg's Bicycle Shop uses a periodic inventory system.

Ending inventory in dollars:

Cost of goods sold in dollars:
     

Ending inventory in dollars:

Cost of goods sold in dollars:

2. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015. Cost per Unit Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Total Cost Beginning inventory Sale ($370 each) Purchase Sale ($420 each) Purchase Sale ($445 each) Purchase 20 15 10 8 10 12 $235$ 4,700 2,550 2,650 2,565 $12,465 255 265 285

Explanation / Answer

Computation of LIFO

Receipts Issues Balances

5

10

235

255

1175

2550

5

2

235

255

1175

510

5

2

10

235

255

265

1175

510

2650

1175

5

9

235

285

1175

2565

Ending inventory 5 units @ 235 = 1175

9 units @285 = 2565

Cost of goods sold 15 units @ 370 = 5550

8 units @ 420 = 3360

12 units @445 = 5340

Computation of FIFO

Receipts Issues Balances

5

10

235

255

1175

2550

7

10

420

265

2940

2650

5

9

265

285

1325

2565

ending inventory 5 units @265 = 1325

9 units @ 285 = 2565

cost of goods sold 15 units @370 = 5550

8 units @ 420 = 3360

12 units @ 445 = 5340.

Date units rate amount units rate amount units rate amount Mar 1 20    235 4700 - - - 20 235 4700 5 - - - 15 370 5550 5 235 1175 9 10 255 2550 - - -

5

10

235

255

1175

2550

17 - - - 8 420 3360

5

2

235

255

1175

510

22 10 265 2650 - - -

5

2

10

235

255

265

1175

510

2650

27 - - - 12 445 5340 5 235

1175

30 9 285 2565 - - -

5

9

235

285

1175

2565