Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system. Date TransactionsUnitsUnit CostTotal CostAugust1Beginning inventory8150$1,200August4Sale ($175 each)5 August11Purchase101401,400August13Sale ($190 each)8 August20Purchase101301,300August26Sale ($200 each)11 August29Purchase121201,440 5,340 For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase. 2. Using FIFO, calculate ending inventory and cost of goods sold at August 31.Ending inventory Cost of goods sold

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Answered: For the specific identification method,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pete’s Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Pete’s Tennis Shop uses a periodic inventory system.

Date		Transactions	Units	Unit Cost	Total Cost
August	1	Beginning inventory	8	150	$1,200
August	4	Sale ($175 each)	5
August	11	Purchase	10	140	1,400
August	13	Sale ($190 each)	8
August	20	Purchase	10	130	1,300
August	26	Sale ($200 each)	11
August	29	Purchase	12	120	1,440
					5,340

For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory and 10 rackets from the August 20 purchase.

2. Using FIFO, calculate ending inventory and cost of goods sold at August 31.