City Bicycle, a cycling store has a beginning inventory of one bi-level touring bicycle 1, for which it paid $2,500. Suppose that during the period the store purchases bi-level touring bicycle 2 for $2,900 and bi-level touring bicycle 3 for $3,000, and that it sells one bicycle for $5,500. The three bicycles are physically identical; only their acquisition costs differ because they were purchased at different times. Suppose City Bicycle uses the FIFO cost-flow assumption. The cost of goods sold is _____; and the ending inventory is _______. Select one: a. Cannot be determined with the information given. b. $2,800; $5,600 c. $2,500; $5,900 d. $3,000; $5,400 e. $2,900; $5,500
City Bicycle, a cycling store has a beginning inventory of one bi-level touring bicycle 1, for which it paid $2,500. Suppose that during the period the store purchases bi-level touring bicycle 2 for $2,900 and bi-level touring bicycle 3 for $3,000, and that it sells one bicycle for $5,500. The three bicycles are physically identical; only their acquisition costs differ because they were purchased at different times. Suppose City Bicycle uses the FIFO cost-flow assumption. The cost of goods sold is _____; and the ending inventory is _______. Select one: a. Cannot be determined with the information given. b. $2,800; $5,600 c. $2,500; $5,900 d. $3,000; $5,400 e. $2,900; $5,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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City Bicycle, a cycling store has a beginning inventory of one bi-level touring bicycle 1, for which it paid $2,500. Suppose that during the period the store purchases bi-level touring bicycle 2 for $2,900 and bi-level touring bicycle 3 for $3,000, and that it sells one bicycle for $5,500. The three bicycles are physically identical; only their acquisition costs differ because they were purchased at different times.
Suppose City Bicycle uses the FIFO cost-flow assumption. The cost of goods sold is _____; and the ending inventory is _______.
Select one:
a. Cannot be determined with the information given.
b. $2,800; $5,600
c. $2,500; $5,900
d. $3,000; $5,400
e. $2,900; $5,500
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