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Question - Urban Bicycle, a cycling store has a beginning inventory of one bi-level touring bicycle 1, for which it paid $2,500. Suppose that during the period the store purchases bi-level touring bicycle 2 for $2,900 and bi-level touring bicycle 3 for $3,000, and that it sells one bicycle for $5,500. The three bicycles are physically identical; the store acquired them at different times as their acquisition costs changed, so only their costs differ.
Suppose the cycling store uses the weighted-average cost-flow assumption. Determine the cost of goods sold and the ending inventory?
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