Question

Weighted Average Cost Method with Perpetual Inventory The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Number of Units Date Transaction Per Unit Total Apr. 3 8 Inventory Purchase $1,200 1,240 $30,000 93,000 80,000 11 Sale 2,000 30 Sale 2,000 60,000 May 8 Purchase 1,260 75,600 10 Sale 2,000 100,000 40,000 Sale 2,000 28 Purchase 1,260 100,800 June 5 Sale 2,250 2,250 16 21 Sale Purchase 90,000 56,250 44,240 1,264 28 Sale 2,250 99,000 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.
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Answer 1

Dunne Co. Schedule of Cost of Goods sold Weighted Average Cost method For three months ended June 30 COGS Total Quantity Cost Purchase Cost Date Total Quantity 03 - Apr Ending Inventory Quantity Cost Total 25 $1,200.00 $ 30,000.00 08-Apr 75 $1,240.00 $ 93,000.00 25 $1,200.00 75 $1,240.00 100 $1,230.00 $ 30,000.00 $ 93,000.00 $ 123,000.00 11 - Apr 40 $1,230.00 $ 49,200.00 60 $ 1,230.00 $ 73,800.00 30-Apr 30 $1,230.00 $ 36,900.00 30 $1,230.00 $ 36,900.00 08-May 60 $1,260.00 $ 75,600.00 30 $1,230.00 60 $ 1,260.00 90 $1,250.00 $ 36,900.00 $ 75,600.00 $ 112,500.00 10-May 50 $1,250.00 $ 62,500.00 40 $1,250.00 $ 50,000.00 19-May 20 $1,250.00 $ 25,000.00 20 $1,250.00 $ 25,000.00 28-May 80 $1,260.00 $ 100,800.00 20 $1,250.00 80 $1,260.00 100 $1,258.00 $ 25,000.00 $ 100,800.00 125800 05-Jun 40 $ 1,258.00 $ 50,320.00 60 $1,258.00 $ 75,480.00 16-Jun 25 $1,258.00 $ 31,450.00 35 $1,258.00 $ 44,030.00 21-Jun 35 $1,264.00 $ 44,240.00 35 $1,258.00 $ 44,030.00 35 $1,264.00 $ 44,240.00 70 $1,261.00 $ 88,270.00 28-Jun 44 $1,261.00 $ 55,484.00 26 $1,261.00 $ 32,786.00 Balances $ 310,854.00 $ 32,786.00 Requirement 2 Total Sales Total cost of goods sold Gross Profit $ 525,250.00 $ (310,854.00) $214,396.00 Requirement 3 Ending Inventory $ 32,786.00