Question Content Area

Weighted average cost method with perpetual inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

Date	Transaction	Number of Units	Per Unit	Total
Jan. 1	Inventory	7,800	$73.00	$569,400
10	Purchase	23,400	83.00	1,942,200
28	Sale	11,700	146.00	1,708,200
30	Sale	3,900	146.00	569,400
Feb. 5	Sale	1,560	146.00	227,760
10	Purchase	56,160	85.50	4,801,680
16	Sale	28,080	156.00	4,380,480
28	Sale	26,520	156.00	4,137,120
Mar. 5	Purchase	46,800	87.50	4,095,000
14	Sale	31,200	156.00	4,867,200
25	Purchase	7,800	88.00	686,400
30	Sale	27,300	156.00	4,258,800

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.

Line Item Description	Amount
Total Sales
Total cost of goods sold
Gross profit

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