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.

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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.

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.

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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.

Check my work

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