1. Record the inventory, purchases, and cost of merchandise sold data in a perpe

Question

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 6, using the weighted average cost method. Round unit cost to two decimal places, if necessary.

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

3. Determine the ending inventory cost as of March 31, 2016.
$

Total sales $ Total cost of merchandise sold $ Gross profit from sales $ The beginning inventory for Funky Party Supplies and data on purchases and sales for a three-month period are as follows: Number Date Transaction Per Unit Total of Units an.1 Inventory 2,500 $60.00 68.00 3,750 120.00 1,250 120.00 500 120.00 70.00 9,000 125.00 8,500125.00 71.60 10,000 125.00 72.00 8,750 125.00 $150,000 510,000 450,000 150,000 60,000 1,260,000 1,125,000 1,062,500 1,074,000 1,250,000 180,000 1,093,750 7,500 10 Purchase 28 Sale 30 Sale Feb. 5 Sale 10 Purchase 16 Salee 28 Sale 18,000 Mar. 5 Purchase 15,000 14 Salee 25 Purchase 30 Sale 2,500

Explanation / Answer

1.

Purchases

2. Tthe total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

3.Ending inventory cost as of March 31, 2016.is $267,000 = 3750 unit*$71.2 weighted average cost.

Funky Party Supplies Schedule of Cost of Merchandise Sold Weighted Average Cost Method For the three months ended March 31, 2016

Purchases

Cost of Merchandise Sold Inventory Date Quantity Unit Cost$ Total Cost$ Quantity Unit Cost$ Total Cost$ Quantity AverageUnit Cost$ Total Cost$ Jan. 1            2,500 60              150,000            2,500 60              150,000 Jan. 10            7,500 68              510,000          10,000 66              660,000 Jan. 28            3,750 66       247,500            6,250 66              412,500 Jan. 30            1,250 66         82,500            5,000 66              330,000 Feb. 5                500 66         33,000            4,500 66              297,000 Feb. 10          18,000 70          1,260,000          22,500 69.2          1,557,000 Feb. 16            9,000 69.2       622,800          13,500 69.2              934,200 Feb. 28            8,500 69.2       588,200            5,000 69.2              346,000 Mar. 5          15,000 71.6          1,074,000          20,000 71          1,420,000 Mar. 14          10,000 71       710,000          10,000 71              710,000 Mar. 25            2,500 72              180,000          12,500 71.2              890,000 Mar. 30            8,750 71.2       623,000            3,750 71.2              267,000 Mar. 31 Total          45,500          3,174,000          41,750 2,907,000       115,500          7,973,700

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