greg s bicycle shop has the following transactions related to it s top selling mongo 460904

Date: Transactions: Units: Cost per unit: Total cost:

March 1 Beginning inventory 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 Sale ($375 each) 12

March 30 Purchase 8 250 2,000

Total: $10,500

a) Calculate ending inventory and cost of goods sold at March 31, 2012 using 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.

b) Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2012

c) Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2012

d) Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2012

e) Calculate sales revenue and gross profit under each of the four methods

f) Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory? Explain.

g) If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.