Reference no: EM133051322

Problem - Riverbed Corporation opened a new store on January 1, 2021. During 2021, the first year of operations, the following purchases and sales of inventory were made:

Purchases			Sales
Date	Units	Cost per unit	Date	Units	Price per unit
Jan. 5	10	$1,000	July 4	15	$2,000
June 11	10	1,180	Dec. 29	33	2,000
Oct. 18	15	1,320
Dec. 20	18	1,470

Required -

1. Calculate the cost of goods available for sale and the number of units of ending inventory.

2. Assume Riverbed uses weighted average periodic. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.

3. Assume Riverbed uses weighted average perpetual. Calculate the cost of ending inventory, cost of the goods sold, and gross profit.

4. 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.