Reference no: EM132914425
Question - Cullumber Company uses a perpetual inventory system. The company began 2021 with 800 lamps in inventory at a cost of $12 per unit. During 2021, Cullumber had the following purchases and sales of lamps:
February 15 Purchased 1,600 units @ $18 per unit
April 24 Sold 2,000 units @ $30 per unit
June 6 Purchased 2,800 units @ $23 per unit
October 18 Sold 1,600 units @ $33 per unit
December 4 Purchased 1,120 units @ $26 per unit
All purchases and sales are on account.
Required -
1. Calculate the cost of goods sold and ending inventory using weighted average.
2. Prepare journal entries to record the June 6 purchase and the October 18 sale.
3. Calculate gross profit for the year.