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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text: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
July 4
Dec. 29
$2,000
$2,000
Jan. 5
10
$1,000
15
June 11
10
1,200
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.
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