Question

Aloha Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. (For specific identification, the May 9 sale consisted of 80 units from beginning inventory and 100 units from the May 6 purchase; the May 30 sale consisted of 200 units from the May 6 purchase and 100 units from the May 25 purchase.)

Date	Activities	Units acquired at cost	Units sold at retail
May 1	Beginning inventory	150 units @ \(300.00 per unit
May 6	Purchase	350 units @ \)350.00 per unit
May 9	Sales		180 units @ \(1,200.00 per unit
May 17	Purchase	80 units @ \)450.00 per unit
May 25	Purchase	100 units @ \(458.00 per unit
May 30	Sales		300 units @ \)1,400.00 per unit
		680 units	480 units

Required

Compute the number of units in ending inventory.

Short answer

Units in ending inventory200 units.

Step-by-step solution

Definition of Retail Price

The amount that a customer will pay at the retail counter for any goods purchased is known as the retail price. It is always higher than the price offered by the wholesaler because of value addition.

Calculation of units in ending inventory

Particular	Amount $
Units available for sale	680
Less: Unit sold	(480)
Ending Inventory	200 units