Aldor Corporation opened a new store on January 1, 2014. During 2014, the first year of operations, the following purchases and sales of inventory were made: Purchases Sales Date Units Cost Date Units Price Jan. 5 June 11 $1,000 1,200 July 4 Dec. 29 $2,000 $2,000 10 15 10 35 Oct. 18 15 1,300 Dec. 20 20 1,500 Instructions (a) Calculate the cost of goods available for sale and the number of units of ending inventory. (b) Assume Aldor uses average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (c) Assume Aldor uses average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.
Aldor Corporation opened a new store on January 1, 2014. During 2014, the first year of operations, the following purchases and sales of inventory were made: Purchases Sales Date Units Cost Date Units Price Jan. 5 June 11 $1,000 1,200 July 4 Dec. 29 $2,000 $2,000 10 15 10 35 Oct. 18 15 1,300 Dec. 20 20 1,500 Instructions (a) Calculate the cost of goods available for sale and the number of units of ending inventory. (b) Assume Aldor uses average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (c) Assume Aldor uses average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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