Solve the follwing Problem Weighted Average Cost Method with Perpetual Inventory

Question

Solve the follwing Problem

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:

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.

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

Date Transaction Number
of Units Per Unit Total Jan. 1 Inventory 7,500 $75.00 $562,500 10 Purchase 22,500 85.00 1,912,500 28 Sale 11,250 150.00 1,687,500 30 Sale 3,750 150.00 562,500 Feb. 5 Sale 1,500 150.00 225,000 10 Purchase 54,000 87.50 4,725,000 16 Sale 27,000 160.00 4,320,000 28 Sale 25,500 160.00 4,080,000 Mar. 5 Purchase 45,000 89.50 4,027,500 14 Sale 30,000 160.00 4,800,000 25 Purchase 7,500 90.00 675,000 30 Sale 26,250 160.00 4,200,000

Explanation / Answer

Ans. Purchases Cost of Goods sold Inventory Date Quantity Unit cost Total cost Quantity Unit cost Total cost Quantity Unit cost Total cost Jan.1 7500 75.00 562500 10-Jan 22500 85 1912500 30000 82.50 2475000 28-Jan 11250 82.5 928125 18750 82.50 1546875 30-Jan 3750 82.5 309375 15000 82.50 1237500 5-Feb 1500 82.5 123750 13500 82.50 1113750 10-Feb 54000 87.5 4725000 67500 86.50 5838750 16-Feb 27000 86.5 2335500 40500 86.50 3503250 28-Feb 25500 86.5 2205750 15000 86.50 1297500 5-Mar 45000 89.5 4027500 60000 88.75 5325000 14-Mar 30000 88.75 2662500 30000 88.75 2662500 25-Mar 7500 90 675000 37500 89 3337500 30-Mar 26250 89 2336250 11250 89 1001250 31-Mar Balances Cost of merch. Sold 10901250 Ending inventory 1001250 Weighted average cost per unit   =   Total cost of inventory / Quantity of inventory Unit cost of goods sold is same as the unit cost of previous balance. Jan.1 75 10-Jan (562500+1912500) / (7500+22500) 82.5 10-Feb (1113750+4725000) / (13500+54000) 86.5 5-Mar (1297500+4027500) / (15000+45000) 88.75 25-Mar (2662500+675000) / (30000+7500) 89 Ans.2 Total sales 19875000 Less: cost of goods sold -10901250 Gross profit 8973750 *Calculation of total sales : Date 28-Jan 11250 150 1687500 30-Jan 3750 150 562500 5-Feb 1500 150 225000 16-Feb 27000 160 4320000 28-Feb 25500 160 4080000 14-Mar 30000 160 4800000 30-Mar 26250 160 4200000 Total Sales 19875000 Ans.3 Cost of Ending Inventory   =    1001250

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.