Aldor Corporation opened a new store on January 1, 2017. During 2017, the first year of operations, the following purchases and sales of inventory were made:

Instructions
(a) Calculate the cost of goods available for sale and the number of units of ending inventory.
(b) Assume Aldor uses weighted average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.
(c) Assume Aldor uses weighted average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.
(d) Prepare journal entries to record the December 20 purchase and the December 29 sale using
(1) Weighted average periodic and
(2) Weighted average perpetual. Assume both the sale and purchase were for cash.
(e) Compare the results of parts (b) and (c) above and comment.
Taking It Further
If a company uses the weighted average cost formula, are there any benefits to using weighted average in a perpetual inventory system compared with using weighted average in a periodic inventory system? Explain.

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Sales Purchases Price Cost Units er uniper unit $2,000 %2,000 Date Date 15 35 1,000 July 4 Jan. 5 June 11 Oct. 18 Dec. 20 10 10 15 20 1,200 1,300 1,500 Dec. 29