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 Total Number of Units 7,400 22,200 Jan. 1 Inventory $532,800 Per Unit $72.00 82.00 144.00 1,820,400 10 28 Purchase Sale 11,100 1,598,400 3,700 144.00 532,800 30 Feb. 5 Sale Sale 1,480 144.00 213,120 10 Purchase 53,280 84.50 16 28 Sale Sale Mar. 5 Purchase 26,640 25,160 44,400 29,600 7,400 25,900 154.00 154.00 86.50 154.00 87.00 154.00 4,502,160 4,102,560 3,874,640 3,840,600 4,558,400 643,800 3,988,600 14 Sale 25 30 Purchase Sale Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrat unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar. Check My Work

Answer 1

Weighted Average Cost Method with Perpetual Inventory

Date	Purchases			Cost of Goods Sold			Inventory
.	Quantity	Unit Cost ($)	Total Cost ($)	Quantity	Unit Cost ($)	Quantity	Total Amount ($)	Unit Cost ($)	Total Cost ($)
Jan1							7,400	72	5,32,800
10	22,200	82	18,20,400				29,600	79.5	23,53,200
28				11,100	79.5	8,82,450	18,500	79.5	14,70,750
30				3,700	79.5	2,94,150	14,800	79.5	11,76,600
Feb.5				1,480	79.5	1,17,660	13,320	79.5	10,58,940
10	53,280	84.5	45,02,160				66,600	83.5	55,61,100
16				26,640	83.5	22,24,440	39,960	83.5	33,36,660
28				25,160	83.5	21,00,860	14,800	83.5	12,35,800
March 5	44,400	86.5	38,40,600				59,200	85.77	50,77,400
14				29,600	85.77	25,38,792	29,600	85.77	25,38,608
25	7,400	87	6,43,800				37,000	86.01	31,82,408
30				25,900	86.01	22,27,659	11,100	86.01	9,54,749

Cost of goods sold = $3,41,880

Inventory = $9,54,749