Required information [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) August 1 8 $140 1,120 August 4 August 11 August 13 August 20 August 26 August 29 5 Purchase 10 130 1,300 Sale ($140 each) Purchase 8 10 120 1, 200 Sale ($150 each) Purchase 11 10 110 1,100 %24 4,720 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. 5. Calculate sales places.) and gross profit under each of the four methods. weighted-average cost amounts to 2 decimal Specific Identification Weighted- average cost FIFO LIFO Sales revenue Gross profit
Required information [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) August 1 8 $140 1,120 August 4 August 11 August 13 August 20 August 26 August 29 5 Purchase 10 130 1,300 Sale ($140 each) Purchase 8 10 120 1, 200 Sale ($150 each) Purchase 11 10 110 1,100 %24 4,720 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. 5. Calculate sales places.) and gross profit under each of the four methods. weighted-average cost amounts to 2 decimal Specific Identification Weighted- average cost FIFO LIFO Sales revenue Gross profit
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4PA: The beginning inventory for Funky Party Supplies and data on purchases and sales for a three-month...
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Step 1 : Formulas to be used
VIEWStep 2 : Computation of sales revenue
VIEWStep 3 : Gross profit using specific identification method :
VIEWStep 4 : Gross profit using FIFO method
VIEWStep 5 : Gross profit using LIFO method
VIEWStep 6 : Gross profit using Weighted average cost method
VIEWStep 7 : Summary of above results :
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