Question

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. (For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.) Date Activities Units Acquired at Cost.

Date	Activities	Units acquired at cost	Units sold at retail
March 1	Beginning inventory	100 units @ \(50.00 per unit
March 5	Purchase	400 units @ \)55.00 per unit
March 9	Sales		420 units @ \(85.00 per unit
March 18	Purchase	120 units @ \)60.00 per unit
March 25	Purchase	200 units @ \(62.00 per unit
March 29	Sales		160 units @ \)95.00 per unit
	Total	820 units	580 units

Required

2. Compute the number of units in ending inventory.

Short answer

There is a total of240 units in the ending inventory of the business entity.

Step-by-step solution

Definition of Sales Revenue

The benefits generated by the business entity by selling the merchandise or services to the customers are known as sales revenue.

Calculation of Units in Ending Inventory

Particular	Units
Total units available for sale	820
Less: Units Sold	(580)
Ending Inventory	240 units