Mitchell Bicycle Shop has the following transactions related to its topselling Mongoose mountain bike for the month of March. Mitchell Bicycle Shop uses a periodic inventory system.
For the specific identification method, the March sale consists of bikes from beginning inventory, the March sale consists of bikes from the March purchase, and the March sale consists of four bikes from beginning inventory and eight bikes from the March purchase.
Required:
Calculate ending inventory and cost of goods sold at March using the specific identification method.
Using FIFO, calculate ending inventory and cost of goods sold at March
Using LIFO, calculate ending inventory and cost of goods sold at March
Using weightedaverage cost, calculate ending inventory and cost of goods sold at March
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?
If Mitchell Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.
