Weighted Average Cost Method with Perpetual Inventory The beginning inventory fo

Question

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 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 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. Midnight Supplies Schedule of Cost of Goods Sold Weighted Average Cost Method For the Three Months Ended March 31 Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 $ $ Jan. 10 $ $ Jan. 28 $ $ Jan. 30 Feb. 5 Feb. 10 Feb. 16 Feb. 28 Mar. 5 Mar. 14 Mar. 25 Mar. 30 Mar. 31 Balances $ $ 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. $

Explanation / Answer

weighted avg cost Date Purchases Cost of goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Avg cost Jan. 1 7500 75 562500 7500 75 562500 10 22500 85 1912500 22500 85 1912500 10 Bal 30000 82.50 2475000 28 11250 82.50 928125 28 Bal 18750 82.50 1546875 30 3750 82.50 309375 Bal 15000 82.50 1237500 Feb. 5 1500 82.50 123750 13500 82.50 1113750 10 54000 87.5 4725000 54000 87.5 4725000 10 Bal 67500 86.50 5838750 16 27000 86.50 2335500 16 28 25500 86.50 2205750 Bal 15000 86.50 1297500 Mar. 5 45000 89.5 4027500 45000 89.5 4027500 5 Bal 60000 88.75 5325000 14 30000 88.75 2662500 Bal 30000 2662500 14 25 7500 90 675000 7500 90 675000 25 Bal 37500 89 3337500 30 26250 89 2336250 30 Bal 11250 89 1001250 31 Total 136500 11902500 125250 10901250 ending bal 11250 1001250 Total sales (16500*150)+(108750*160) 19875000 Less: Cost of Good sold 10901250 Gross Profit 8973750 Ending Inventory 1001250

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