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Billies Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for...

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Accounting

Billies Tennis Shop has the following transactions related to its top-selling Wilson tennis racket for the month of August. Billies Tennis Shop uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
August 1 Beginning inventory 8 $142 $1,136
August 4 Sale ($135 each) 5
August 11 Purchase 10 132 1,320
August 13 Sale ($150 each) 8
August 20 Purchase 10 122 1,220
August 26 Sale ($160 each) 11
August 29 Purchase 12 112 1,344
$5,020

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.

Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

If Billies chooses to report inventory using LIFO, record the LIFO adjustment.

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