FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
Beginning
inventory
Sale ($125 each)
August 1
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
Purchase
10
130
1,300
Sale ($140 each)
Purchase
8
10
120
1, 200
Sale ($150 each)
Purchase
11
10
110
1,100
$
4,720
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](https://content.bartleby.com/qna-images/question/e2e363c5-2472-4cf7-839e-3830821f17e5/b188f9e2-43dc-47ae-adbf-3ddc786a1013/63hqtrk_processed.png)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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
Beginning
inventory
Sale ($125 each)
August 1
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
Purchase
10
130
1,300
Sale ($140 each)
Purchase
8
10
120
1, 200
Sale ($150 each)
Purchase
11
10
110
1,100
$
4,720
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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