# Greg’s bicycle shop uses a periodic inventory system

 Greg’s Bicycle Shop has the following transactions related to its top-sellingMongoose mountain bike for the month of March 2015. Greg’s Bicycle Shop uses a periodic inventory system.

 Date Transactions Units Cost perUnit Total Cost March 1 Beginning inventory 20 \$205 \$ 4,100 March 5 Sale (\$310 each) 15 March 9 Purchase 10 225 2,250 March 17 Sale (\$360 each) 8 March 22 Purchase 10 235 2,350 March 27 Sale (\$385 each) 12 March 30 Purchase 9 255 2,295 \$ 10,995

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Section BreakProblem 6-2A Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four inventory methods [(LO3, 4, 5)

1.

value:
1.00 points

Required information

Problem 6-2A Part 1

 Required: 1. Calculate ending inventory and cost of goods sold at March 31, 2015, 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.

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eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 1Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.

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2.

value:
1.00 points

Required information

Problem 6-2A Part 2

 2 Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

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eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 2Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.

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3.

value:
1.00 points

Required information

Problem 6-2A Part 3

 3 Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.

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eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 3Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.

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4.

value:
1.00 points

Required information

Problem 6-2A Part 4

 4 Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)

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eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 4Learning Objective: 06-03 Determine the cost of goods sold and ending inventory using different inventory cost methods.

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5.

value:
1.00 points

Required information

Problem 6-2A Part 5

 5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)

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eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 5Learning Objective: 06-04 Explain the financial statement effects and tax effects of inventory cost flow assumptions.

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6.

value:
1.00 points

Required information

Problem 6-2A Part 6

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

FIFO

LIFO

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eBook & Resources

Multiple ChoiceDifficulty: Hard

Problem 6-2A Part 6Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

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7.

value:
1.00 points

Required information

Problem 6-2A Part 7

 7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment.(If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

References

eBook & Resources

Problem ADifficulty: Hard

Problem 6-2A Part 7Learning Objective: 06-05 Record inventory transactions using a perpetual inventory system.

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