Weighted Average Cost Method with Perpetual InventoryThe beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:Date TransactionNumberof UnitsPer UnitTotalJan. 1 Inventory7,900 $75.00 $592,500 10 Purchase23,700 85.00 2,014,500 28 Sale11,850 150.00 1,777,500 30 Sale3,950 150.00 592,500 Feb. 5 Sale1,580 150.00 237,000 10 Purchase56,880 87.50 4,977,000 16 Sale28,440 160.00 4,550,400 28 Sale26,860 160.00 4,297,600 Mar. 5 Purchase47,400 89.50 4,242,300 14 Sale31,600 160.00 5,056,000 25 Purchase7,900 90.00 711,000 30 Sale27,650 160.00 4,424,000 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. The round unit costs two decimal places, if necessary. Round all total cost amounts to the nearest dollar.

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Description: Weighted Average Cost Method with Perpetual InventoryThe beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:Date TransactionNumberof UnitsPer UnitTotalJan. 1 Inventory7,900 $75.00 $592,50

Weighted Average Cost Method: In this method, inventory is valued at the average value on the basis…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Weighted Average Cost Method with Perpetual Inventory

The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:

Date	Transaction	Number of Units	Total
Jan. 1	Inventory	7,900	$75.00	$592,500
10	Purchase	23,700	85.00	2,014,500
28	Sale	11,850	150.00	1,777,500
30	Sale	3,950	150.00	592,500
Feb. 5	Sale	1,580	150.00	237,000
10	Purchase	56,880	87.50	4,977,000
16	Sale	28,440	160.00	4,550,400
28	Sale	26,860	160.00	4,297,600
Mar. 5	Purchase	47,400	89.50	4,242,300
14	Sale	31,600	160.00	5,056,000
25	Purchase	7,900	90.00	711,000
30	Sale	27,650	160.00	4,424,000

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. The round unit costs two decimal places, if necessary. Round all total cost amounts to the nearest dollar.

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