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Financial & Managerial Accounting
Found in: Page 269
Financial & Managerial Accounting

Financial & Managerial Accounting

Book edition 7th
Author(s) John J Wild, Ken W. Shaw, Barbara Chiappetta
Pages 1096 pages
ISBN 9781259726705

Short Answer

Aloha Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, the May 9 sale consisted of 80 units from beginning inventory and 100 units from the May 6 purchase; the May 30 sale consisted of 200 units from the May 6 purchase and 100 units from the May 25 purchase.)

Date

Activities

Units acquired at cost

Units sold at retail

May 1

Beginning inventory

150 units @ $300.00 per unit

May 6

Purchase

350 units @ $350.00 per unit

May 9

Sales

180 units @ $1,200.00 per unit

May 17

Purchase

80 units @ $450.00 per unit

May 25

Purchase

100 units @ $458.00 per unit

May 30

Sales

300 units @ $1,400.00 per unit

680 units

480 units

Required

Compute the number of units in ending inventory.

Units in ending inventory 200 units.

See the step by step solution

Step by Step Solution

Definition of Retail Price

The amount that a customer will pay at the retail counter for any goods purchased is known as the retail price. It is always higher than the price offered by the wholesaler because of value addition.

Calculation of units in ending inventory

Particular

Amount $

Units available for sale

680

Less: Unit sold

(480)

Ending Inventory

200 units

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