Use LIFO to calculate ending inventory and cost of goods sold at March 31 (The f

Question

Use LIFO to calculate ending inventory and cost of goods sold at March 31

(The following information applies to the questions displayed below.) Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike Cost per UnitT 20 $245 $ 4,900 Transactions Units Total Cost Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Beginning inventory Sale ($390 each) Purchase Sale($440 each) Purchase Sale ($465 each) Purchase 15 10 265 2,650 2,750 2,360 $12,660 8 10 12 275 8 295 References

Explanation / Answer

5 units @ $245 = $1,225

10 units @ $265 = $2,650

5 units @ $245 = $1,225

2 units @ $265 = $530

5 units @ $245 = $1,225

2 units @ $265 = $530

10 units @ $275 = $2,750

10 units @ $275 = $2,750

2 units @ $265 = $530

5 units @ $245 = $1,225

8 units @ $295 = $2,360

Ending inventory = 1,225+2,360 = $3,585

Cost of goods sold = 3,675+2,120+2,750+530 = $9,075

LIFO Date Purchase Cost of goods sold Balance Mar 1 20 units @ $245 = $4,900 Mar 5 15 units @ $245 = $3,675 5 units @ $245 = $1,225 Mar 9 10 units @ $265 = $2,650

5 units @ $245 = $1,225

10 units @ $265 = $2,650

Mar 17 8 units @ $265 = $2,120

5 units @ $245 = $1,225

2 units @ $265 = $530

Mar 22 10 units @ $275 = $2,750

5 units @ $245 = $1,225

2 units @ $265 = $530

10 units @ $275 = $2,750

Mar 27

10 units @ $275 = $2,750

2 units @ $265 = $530

5 units @ $245 = $1,225 Mar 30 8 units @ $295 = $2,360

5 units @ $245 = $1,225

8 units @ $295 = $2,360

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