Question

U w a naning resource from Cengage Learning Chapters 05 & 06 HW eBook Calculator Print Item 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: Number Date Transaction of Units Per Unit Total Jan. 1 Inventory 8,000 $74.00 $592,000 10 Purchase 24,000 84.00 2,016,000 28 Sale 12,000 148.00 1,776,000 30 Sale 4,000 148.00 592,000 Feb. 5 Sale 1,600 148.00 236,800 10 Purchase 57,600 86.50 4,982,400 16 Sale 28,800 158.00 4,550,400 28 Sale 27,200 158.00 4,297,600 Mar. 5 Purchase 48,000 88.50 4,248,000 14 Sale 32,000 158.00 5,056,000 25 Purchase 8,000 89.00 712,000 30 Sale 28,000 158.00 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, usin 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

Answer 1

Correct Answer:

Weighted Average
Weighted Average	Cost of Goods Available for sale			Cost of goods sold			Ending Inventory
	No. of units	Cost per unit	Cost of goods available for sale	No. of units	Cost per unit	Cost of goods sold	No. of units	Cost per unit	Ending Inventory
01-Jan	8000	$                      74	$       5,92,000				8000	$                           74	$                   5,92,000
Purchases:
10-Jan	24000	$                      84	$     20,16,000				32000	$                81.5000	$           26,08,000.00
28-Jan				12000	$                 82	$              9,78,000	20000	$                81.5000	$           16,30,000.00
30-Jan				4000	$                 82	$              3,26,000	16000	$               81.5000	$           13,04,000.00
05-Feb				1600	$                 82	$              1,30,400	14400	$                81.5000	$           11,73,600.00
10-Feb	57600	$                      87	$     49,82,400				72000	$                85.5000	$           61,56,000.00
16-Feb				28800	$                 86	$            24,62,400	43200	$                85.5000	$           36,93,600.00
28-Feb				27200	$                 86	$            23,25,600	16000	$                85.5000	$           13,68,000.00
05-Mar	48000	$                      89	$     42,48,000				64000	$                87.7500	$           56,16,000.00
14-Mar				32000	$                 88	$            28,08,000	32000	$                87.7500	$           28,08,000.00
25-Mar	8000	$                      89	$       7,12,000				40000	$                88.0000	$           35,20,000.00
30-Mar				28000	$                 88	$            24,64,000	12000	$                88.0000	$           10,56,000.00
Total	145600		$ 1,18,38,400	133600		$      13,04,000.00	12000	$                88.0000	$           10,56,000.00

Working:

	A	B	C =B/A
	Inventory balance	Total cost	Average cost for each units
01-Jan	8000	$        5,92,000.00	$       74.0000
10-Jan	32000	$      26,08,000.00	$       81.5000
28-Jan	20000	$      16,30,000.00	$       81.5000
30-Jan	16000	$      13,04,000.00	$       81.5000
05-Feb	14400	$      11,73,600.00	$       81.5000
10-Feb	72000	$      61,56,000.00	$       85.5000
16-Feb	43200	$      36,93,600.00	$       85.5000
28-Feb	16000	$      13,68,000.00	$       85.5000
05-Mar	64000	$      56,16,000.00	$       87.7500
14-Mar	32000	$      28,08,000.00	$       87.7500
25-Mar	40000	35,20,000.00	$       88.0000
30-Mar	12000	10,56,000.00	$       88.0000

End of answer.

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