Albright Corporation opened a new store on January 1, 2021. During 2021, the first year of operations, the following purchases and sales of inventory were made: Date 5-Jan 11-Jun 18-Oct 20-Dec Purchases Units 10 Cost $ 1,000 10. $ 1,200 15. $ 1,300 20 $ 1,500 Date Sales Units 4-Jul 15 29-Dec 35 Cost $ 2,000 $ 2,000 Required: 2. 1. Calculate the cost of goods available for sale and the number of units of ending inventory. Assume Albright uses average periodic. Calculate the value of the ending inventory, cost of goods sold and gross profit. 3. Assume Albright uses average perpetual. Calculate the value of the ending inventory, cost of goods sold, and gross profit. 4. On December 31, 2021, the company realizes the inventory has a net realizable value of $800 per unit. What amount should be reported on the balance sheet on December 31? Record the adjusting entry.
Albright Corporation opened a new store on January 1, 2021. During 2021, the first year of operations, the following purchases and sales of inventory were made: Date 5-Jan 11-Jun 18-Oct 20-Dec Purchases Units 10 Cost $ 1,000 10. $ 1,200 15. $ 1,300 20 $ 1,500 Date Sales Units 4-Jul 15 29-Dec 35 Cost $ 2,000 $ 2,000 Required: 2. 1. Calculate the cost of goods available for sale and the number of units of ending inventory. Assume Albright uses average periodic. Calculate the value of the ending inventory, cost of goods sold and gross profit. 3. Assume Albright uses average perpetual. Calculate the value of the ending inventory, cost of goods sold, and gross profit. 4. On December 31, 2021, the company realizes the inventory has a net realizable value of $800 per unit. What amount should be reported on the balance sheet on December 31? Record the adjusting entry.
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 13RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...
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Step 1: Explain Periodic system
VIEWStep 2: 1) Compute Cost of goods available for sale & ending inventory
VIEWStep 3: 2) Compute Ending inventory, COGS & gross profit-peroidic system
VIEWStep 4: 3) Compute Ending inventory, COGS & gross profit-perpetual system
VIEWStep 5: 4) Compute amt reported on balancesheet
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