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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 specific identification system, and uses serial numbers or product bar codes to identify bi-level touring bicycle 2 as the unit sold. The cost of goods sold and the ending inventory, respectively, are:
a. $2,900; $5,500
b. $2,500; $5,900
c. $3,000; $5,400
d. $2,800; $5,600
e. Cannot be determined with the information given
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