FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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.
Date | Transactions | Units | Unit Cost | 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 | |||||||||||||||
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.
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Introduction :
In Specific Identification method we can easily find that Units which are sold are from which lot and accordingly we have to find COGS and Closing Inventory as follows :
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