Athletes Sporting Goods began operations February 1,2014.Athletes sells baseball bats to high schools and colleges throughout the country.The company uses a periodic system.A summary of inventory records for the month of February appears below:

All bats are sold for $47.50.Athletes takes all discounts that are offered and uses the net method for recording purchases.On February 28,there were 470 bats on hand.
(1)Compute the ending inventory cost under FIFO.
(2)Compute the gross margin on sales under LIFO.
(3)Compute the ending inventory cost under LIFO.
(4)Give the journal entry to record the February 2 purchase.

Question

Athletes Sporting Goods began operations February 1,2014.Athletes sells baseball bats to high schools and colleges throughout the country.The company uses a periodic system.A summary of inventory records for the month of February appears below:
  
All bats are sold for $47.50.Athletes takes all discounts that are offered and uses the net method for recording purchases.On February 28,there were 470 bats on hand.
(1)Compute the ending inventory cost under FIFO.
(2)Compute the gross margin on sales under LIFO.
(3)Compute the ending inventory cost under LIFO.
(4)Give the journal entry to record the February 2 purchase.

Quizplus · Accepted Answer

The Answer of Athletes Sporting Goods began operations February 1,2014.Athletes sells baseball bats to high schools and colleges throughout the country.The company uses a periodic system.A summary of inventory records for the month of February appears below:
  
All bats are sold for $47.50.Athletes takes all discounts that are offered and uses the net method for recording purchases.On February 28,there were 470 bats on hand.
(1)Compute the ending inventory cost under FIFO.
(2)Compute the gross margin on sales under LIFO.
(3)Compute the ending inventory cost under LIFO.
(4)Give the journal entry to record the February 2 purchase.

Athletes Sporting Goods Began Operations February 1,2014