Weighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Line Item Description Amount Total sales $13,830,000 Total cost of goods sold $ Gross profit
Weighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows: Date Transaction Number of Units Per Unit Total Jan. 1 Inventory 9,000 $60.00 $540,000 Jan. 10 Purchase 21,000 70.00 1,470,000 Jan. 28 Sale 10,250 140.00 1,435,000 Jan. 30 Sale 5,750 140.00 805,000 Feb. 5 Sale 3,500 140.00 490,000 Feb. 10 Purchase 39,500 75.00 2,962,500 Feb. 16 Sale 15,000 150.00 2,250,000 Feb. 28 Sale 10,000 150.00 1,500,000 Mar. 5 Purchase 25,000 82.00 2,050,000 Mar. 14 Sale 30,000 150.00 4,500,000 Mar. 25 Purchase 10,000 88.40 884,000 Mar. 30 Sale 19,000 150.00 2,850,000 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Line Item Description Amount Total sales $13,830,000 Total cost of goods sold $ Gross profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Weighted average cost method with perpetual inventory
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total |
|---|---|---|---|---|
| Jan. 1 | Inventory | 9,000 | $60.00 | $540,000 |
| Jan. 10 | Purchase | 21,000 | 70.00 | 1,470,000 |
| Jan. 28 | Sale | 10,250 | 140.00 | 1,435,000 |
| Jan. 30 | Sale | 5,750 | 140.00 | 805,000 |
| Feb. 5 | Sale | 3,500 | 140.00 | 490,000 |
| Feb. 10 | Purchase | 39,500 | 75.00 | 2,962,500 |
| Feb. 16 | Sale | 15,000 | 150.00 | 2,250,000 |
| Feb. 28 | Sale | 10,000 | 150.00 | 1,500,000 |
| Mar. 5 | Purchase | 25,000 | 82.00 | 2,050,000 |
| Mar. 14 | Sale | 30,000 | 150.00 | 4,500,000 |
| Mar. 25 | Purchase | 10,000 | 88.40 | 884,000 |
| Mar. 30 | Sale | 19,000 | 150.00 | 2,850,000 |
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method.
2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.
| Line Item Description | Amount |
|---|---|
| Total sales | $13,830,000 |
| Total cost of goods sold | $ |
| Gross profit |
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