Greg's Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Transactions Total Cost Date March 1 Beginning inventory Units 20 Unit Cost $200 $ 4,000 March 5 Sale ($300 each) 15 March 9 Purchase 10 220 2,200 March 17 Sale ($350 each) 8 March 22 March 27 March 30 Purchase 10 230 2,300 Sale ($375 each) Purchase 12 8 250 2,000 $10,500 For 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. 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.) Sales revenue Cost of goods sold Gross profit Specific Identification Weighted- FIFO LIFO average cost

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four
inventory methods (LO6-3, 6-4,6-5)
[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 for the month of
March. Greg's Bicycle Shop uses a periodic inventory system.
Transactions
Beginning inventory
Date
Units
Unit Cost
Total Cost
March 1
20
$ 200
$ 4,000
March 5
Sale ($300 each)
15
March 9
Purchase
10
220
2,200
March 17
Sale ($350 each)
8
March 22
Purchase
10
230
2,300
March 27
March 30
Sale ($375 each)
Purchase
12
8
250
2,000
$10,500
For 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.
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.)
Sales revenue
Cost of goods sold
Gross profit
Specific
Identification
Weighted-
FIFO
LIFO
average cost
Transcribed Image Text:Required information Problem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods (LO6-3, 6-4,6-5) [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 for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Transactions Beginning inventory Date Units Unit Cost Total Cost March 1 20 $ 200 $ 4,000 March 5 Sale ($300 each) 15 March 9 Purchase 10 220 2,200 March 17 Sale ($350 each) 8 March 22 Purchase 10 230 2,300 March 27 March 30 Sale ($375 each) Purchase 12 8 250 2,000 $10,500 For 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. 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.) Sales revenue Cost of goods sold Gross profit Specific Identification Weighted- FIFO LIFO average cost
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