Top Light Company uses a perpetual inventory system. The company began 2021 with 1,000 lamps in inventory at a cost of $12 per unit. During 2021, Top Light had the following purchases and sales of lamps:

All purchases and sales are on account.

Instructions

a. Calculate the cost of goods sold and ending inventory using weighted average. Round the weighted average cost per unit to two decimal places.

b. Prepare journal entries to record the June 6 purchase and the October 18 sale.

c. Calculate gross profi t for the year.

Transcribed Image Text:

February 15 April 24 June 6 October 18 December 4 Purchased 2,000 units @ $18 per unit 2,500 units @ $30 per unit 3,500 units @ $23 per unit 2,000 units @ $33 per unit 1,400 units @ $26 per unit Sold Purchased Sold Purchased