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question on jan 1 bike mart had a beginning inventory of 20 bicycles which it purcha 4278549

Question

On Jan 1, Bike Mart had a beginning inventory of20 bicycleswhich it purchased for$350 each.

During January, the company purchasesfourmore bicycles for$400each. None were sold in January.

On February 15, the company purchasesfivemore bicycles for$450each.

Between February 16 and 28, Bike Mart sells10of these bicycles.

a.) Calculate Bike Mart’sEnding Inventory Balance(in dollars) at the end of FebruaryandCost of Goods Soldthrough February using theFIFOMethod. (show all work.)

 

b.) Calculate Bike Mart’sEnding Inventory Balance(in dollars) at the end of FebruaryandCost of Goods Soldthrough February using theWeighted AverageMethod. (show all work.)

 

 

c.) At the end of February, will Bike Mart’s Net Income (profits) on its Income Statement be higher if it uses the FIFO or Weighted Average Inventory Method? Why?

d.) At the end of February, will Bike Mart’s Total Assets on its Balance Sheet be higher if it uses the FIFO or Weighted Average Inventory Method? Why?

e.) At the end of February, will Bike Mart’s Inventory Turnover Ratio be higher if it uses the FIFO or Weighted Average Inventory Method? Why?

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