Reference no: EM132693526

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 UnitTotal

Jan. 1 Inventory 7,900 $75.00 $592,500

Jan. 10 Purchase 23,700 85.00 2,014,500

Jan. 28 Sale 11,850 150.00 1,777,500

Jan. 30 Sale 3,950 150.00 592,500

Feb. 5 Sale 1,580 150.00 237,000

Feb. 10 Purchase 56,880 87.50 4,977,000

Feb. 16 Sale 28,440 160.00 4,550,400

Feb. 28 Sale 26,860 160.00 4,297,600

Mar. 5 Purchase 47,400 89.50 4,242,300

Mar. 14 Sale 31,600 160.00 5,056,000

Mar. 25 Purchase 7,900 90.00 711,000

Mar. 30 Sale 27,650 160.00 4,424,000

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.

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