You are given the following information about Sasha Company's inventory for the month of April.

Instructions
(a) Calculate the cost of goods available for sale and the number of units of ending inventory.
(b) Assume Sasha uses weighted average periodic. Calculate the cost of ending inventory, cost of goods sold, and gross profit. (Note: Round the weighted average cost per unit to two decimal places.)
(c) Assume Sasha uses weighted average perpetual. Calculate the cost of ending inventory, cost of goods sold, and gross profit. (Note: Round the weighted average cost per unit to two decimal places.)
(d) Prepare journal entries to record the April 25 purchase and the April 29 sale using (1) weighted average periodic and (2) weighted average perpetual.
(e) Compare the results of parts (b) and (c) above and comment.
Taking It Further
Companies are required to disclose their cost determination method, but not the inventory system (periodic or perpetual). Provide an explanation as to why?

Transcribed Image Text:

Purchases Sales Units 300 1,000 1,400 Date Units 400 1,300 1,200 600 Cost per unit 4.00 4.10 4.50 4.75 Date April 1 10 25 27 Price per unit $7.00 7.00 7.50 April 2 29