A company uses a prepetual inventory system. It entered intothe following calendar year 2009 purchases and salestransactions.
Date Activities Units Acquired at Cost Units Sold at Retail
Jan.1 Begininginventory............... 770 units @$50/unit
Feb. 10 Purchase............................. 420units @ $41/unit
Mar.13 Purchase.............................. 260 units @ $25/unit
Mar.15 Sales..................................... 770 units @ $75/unit
Aug. 21 Purchase............................... 180 units @ $49/unit
Sept. 5 Purchase............................... 585units @ $42/unit
Sept. 10 Sales..................................... 650units @ $75/unit
Totals.................................... 2,215units 1,420 units
a) Compute cost of goods available for sale and the number of units available for sale.
b) Compute the number of units in endinginventory.