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 Inventory7,500 $79.00 $592,500 10 Purchase22,500 89.00 2,002,500 28 Sale11,250 158.00 1,777,500 30 Sale3,750 158.00 592,500 Feb. 5 Sale1,500 158.00 237,000 10 Purchase54,000 91.50 4,941,000 16 Sale27,000 168.00 4,536,000 28 Sale25,500 168.00 4,284,000 Mar. 5 Purchase45,000 93.50 4,207,500 14 Sale30,000 168.00 5,040,000 25 Purchase7,500 94.00 705,000 30 Sale26,250 168.00 4,410,000 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.

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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 Inventory7,500 $79.00 $592,50

Weighted Average Cost Method The COGS and inventory amounts are determined using a weighted average…

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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	7,500	$79.00	$592,500
10	Purchase	22,500	89.00	2,002,500
28	Sale	11,250	158.00	1,777,500
30	Sale	3,750	158.00	592,500
Feb. 5	Sale	1,500	158.00	237,000
10	Purchase	54,000	91.50	4,941,000
16	Sale	27,000	168.00	4,536,000
28	Sale	25,500	168.00	4,284,000
Mar. 5	Purchase	45,000	93.50	4,207,500
14	Sale	30,000	168.00	5,040,000
25	Purchase	7,500	94.00	705,000
30	Sale	26,250	168.00	4,410,000

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.

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