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 average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (Note: Round the average cost per unit to three decimal places.)
(c) Assume Sasha uses average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit. (Note: round the average cost per unit to three decimal places.)
(d) Prepare journal entries to record the April 25 purchase and the April 29 sale using
(1) Average periodic and
(2) Average perpetual.
(e) Compare the results of (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:

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