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 Numberof Units Per Unit Total Jan. 1 Inventory 8,000 $71.00 $568,000 10 Purchase 24,000 81.00 1,944,000 28 Sale 12,000 142.00 1,704,000 30 Sale 4,000 142.00 568,000 Feb. 5 Sale 1,600 142.00 227,200 10 Purchase 57,600 83.50 4,809,600 16 Sale 28,800 152.00 4,377,600 28 Sale 27,200 152.00 4,134,400 Mar. 5 Purchase 48,000 85.50 4,104,000 14 Sale 32,000 152.00 4,864,000 25 Purchase 8,000 86.00 688,000 30 Sale 28,000 152.00 4,256,000 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. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar. 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Total sales $ Total cost of goods sold $ Gross profit $ 3. Determine the ending inventory cost as of March 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 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	8,000	$71.00	$568,000
10	Purchase	24,000	81.00	1,944,000
28	Sale	12,000	142.00	1,704,000
30	Sale	4,000	142.00	568,000
Feb. 5	Sale	1,600	142.00	227,200
10	Purchase	57,600	83.50	4,809,600
16	Sale	28,800	152.00	4,377,600
28	Sale	27,200	152.00	4,134,400
Mar. 5	Purchase	48,000	85.50	4,104,000
14	Sale	32,000	152.00	4,864,000
25	Purchase	8,000	86.00	688,000
30	Sale	28,000	152.00	4,256,000

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

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Total sales	$
Total cost of goods sold	$
Gross profit	$

3. Determine the ending inventory cost as of March 31.

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