cost of ending inventory 460519

Two Wheels operates on a fiscal year beginning January 1. At the beginning of the year, the shop had 6 bicycles @$394 each (opening inventory). During the year the business made the following purchases:

Date Bicycle Cost

Jan.20 4 $399

Mar. 5 5 $415

Apr. 23 7 $419

Aug. 14 4 $423

Oct. 3 6 $430

Nov. 17 3 $435

There were seven bicycles in inventory at the end of the period. During the year, the bicycles were sold for $675 each.

Instructions:

Calculate the cost of the ending inventory using the FIFO, LIFO, and weighted average cost methods.

Prepare a partial income statement for each inventory costing method showing the sales and the calculation of gross profit on sales.

Assume that the sales and purchases are net amounts.