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four inventory methods $($LO$6-3,6-4,6-5)$

Mitchell Bicycle Shop has the following transactions related to its top$-$selling Mongoose mountain bike for the month of March. Mitchell Bicycle Shop uses a periodic inventory system.

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.

Required:

$1.$ Calculate ending inventory and cost of goods sold at March $31,$ using the specific identification method.

$2.$ Using FIFO, calculate ending inventory and cost of goods sold at March $31.$

$3.$ Using LIFO, calculate ending inventory and cost of goods sold at March $31.$

$4.$ Using weighted$-$average cost, calculate ending inventory and cost of goods sold at March $31.$

$5.$ Calculate sales revenue and gross profit under each of the four methods.

$6.$ Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

$7.$ If Mitchell Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. Journal entry worksheet

$1$

Note: Enter debits before credits.

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