5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts places.) Answer is complete but not entirely correct. Specific Identification Weighted- average cost FIFO LIFO Sales revenue $ 3,395 O $ 3,395 O $ 3,395 2$ 3,395.00 Cost of goods sold 3,080 3,140 O 3,070 X 3,124.00 Gross profit 315 $ 255 $ 325 X $ 271.00 X
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts places.) Answer is complete but not entirely correct. Specific Identification Weighted- average cost FIFO LIFO Sales revenue $ 3,395 O $ 3,395 O $ 3,395 2$ 3,395.00 Cost of goods sold 3,080 3,140 O 3,070 X 3,124.00 Gross profit 315 $ 255 $ 325 X $ 271.00 X
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter6: Inventories
Section: Chapter Questions
Problem 1PB: FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a...
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Question
Transcribed Image Text:cm6n ר 7ם
Purchase
aכLC
TT
1,100
$
4,720
August 29
10
110
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale
consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory
and 10 rackets from the August 20 purchase.
Problem 6-2B Part 5
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal
places.)
X Answer is complete but not entirely correct.
Specific
Identification
Weighted-
average cost
FIFO
LIFO
Sales revenue
$
3,395
$
3,395
3,395
$
3,395.00
Cost of goods
3,080
3,140
3,070 X
3,124.00 X
sold
Gross profit
$
315
$
255
325 X $
271.00 X
%24
![!
Required information
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four
inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August.
Pete's Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
Beginning
inventory
Sale ($125 each)
Purchase
Sale ($140 each)
Purchase
August 1
8.
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
130
1,300
120
1,200
Sale ($150 each)
10
11
1,100
$
4,720
Purchase
10
110
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale
consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory
and 10 rackets from the August 20 purchase.
Problem 6-2B Part 5
LO O 00 HO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F80ed8682-4dc6-4c07-842b-aecbd8829caf%2Fd1twl6w_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
Problem 6-2B Calculate ending inventory, cost of goods sold, sales revenue, and gross profit for four
inventory methods (LO6-3, 6-4, 6-5)
[The following information applies to the questions displayed below.]
Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August.
Pete's Tennis Shop uses a periodic inventory system.
Date
Transactions
Units
Unit Cost
Total Cost
Beginning
inventory
Sale ($125 each)
Purchase
Sale ($140 each)
Purchase
August 1
8.
$140
$
1,120
August 4
August 11
August 13
August 20
August 26
August 29
130
1,300
120
1,200
Sale ($150 each)
10
11
1,100
$
4,720
Purchase
10
110
For the specific identification method, the August 4 sale consists of rackets from beginning inventory, the August 13 sale
consists of rackets from the August 11 purchase, and the August 26 sale consists of one racket from beginning inventory
and 10 rackets from the August 20 purchase.
Problem 6-2B Part 5
LO O 00 HO
Expert Solution
Step 1 Introduction
The FIFO stands for First in First out and LIFO stands for Last in first out.
Using average method, cost per unit ia calculated as total cost of goods available for sale divided by number of units available for sale.
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