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shepherd cycles sells a variety of bicycles the business which uses the fifo method 688021

Shepherd Cycles sells a variety of bicycles. The business which uses the FIFO method, began the last quarter of 2013 (October 1 to December 31) with 20 “Iron Man 2” bicycles at a total cost of $122,000. During the quarter, the company completed the following transactions.October 8 105 bicycles were purchased at a cost of $5,920 each but in addition there was a freight charge of $480 on each bicycle. October 31 The sales for October were 85 bicycles which yielded total sales revenue of $761,600. ( 15 of these units were sold on account) November 4 A new batch of 60 bicycles was purchased at a total cost of $408,000November 10 5 of the bicycles purchased on November 4 were returned to the supplier, as they were defective. November 30 During the month 57 bicycles were sold at a price of $9,520 each. December 4 A customer, to whom 9 bicycles were sold during the first business day of November, returned 4 of the cycles. December 10 Owing to an increased demand, a further 115 bicycles were purchased at a cost of $7,600 each; these were subject to a trade discount of 5% each. December 31 122 bicycles were sold during December at a unit selling price of $10,100.December 31 An actual count of inventory was carried out which revealed that there were 28 units of the merchandise in the store room.

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