Greg’s Bicycle Shop has the following transactions related to its top-selling Mo
ID: 2547699 • Letter: G
Question
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
Using FIFO, calculate ending inventory and cost of goods sold at March 31.
Date Transactions Units Cost per
Unit Total Cost March 1 Beginning inventory 20 $250 $ 5,000 March 5 Sale ($400 each) 15 March 9 Purchase 10 270 2,700 March 17 Sale ($450 each) 8 March 22 Purchase 10 280 2,800 March 27 Sale ($475 each) 12 March 30 Purchase 9 300 2,700 $ 13,200
Explanation / Answer
total units available units pu total 1-Mar Beginning inventory 20 250 5000 9-Mar purchases 10 270 2700 22-Mar purchases 10 280 2,800 30-Mar purchases 9 300 2700 total units available 49 13200 units sold = 15+8+12= 35 Ending inventory = 49-35= 14 FIFO means the sale will be from first purchases cost of goods sold units pu total 1-Mar Beginning inventory 20 250 5000 9-Mar purchases 10 270 2700 22-Mar purchases 5 280 1,400 total units available 35 9100 answer ending inventory units pu total 22-Mar purchases 5 280 1,400 30-Mar purchases 9 300 2700 total units available 14 4100 answer
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