50.1K

Verified Solution

Link Copied!

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Using weighted$-$average cost, calculate ending inventory and cost of goods sold at March $31.$

Note: Round your intermediate calculations to $4$ decimal places and final answers to $2$ decimal places.Greg's Bicycle Shop has the following transactions related to its top$-$selling Mongoose mountain bike for the month of March.

Required:

Calculate ending inventory and cost of goods sold at March $31,$ 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.

Using FIFO, calculate ending inventory and cost of goods sold at March $31.$

Using LIFO, calculate ending inventory and cost of goods sold at March $31.$

Using weighted$-$average cost, calculate ending inventory and cost of goods sold at March $31.$

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

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

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer