Weighted Average Cost Flow Method Under Perpetual Inventory System

The following units of a particular item were available for sale during the calendar year:

Jan. 1	Inventory	4,000 units at $20
Apr. 19	Sale	2,500 units
June 30	Purchase	6,000 units at $24
Sept. 2	Sale	4,500 units
Nov. 15	Purchase	1,000 units at $25

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 6. Round unit cost to two decimal places, if necessary.

Schedule of Cost of Merchandise Sold Weighted Average Cost Flow Method
	Purchases			Cost of Merchandise Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1							4,000	$20	$80,000
Apr. 19				2,500	$20	$50,000	1,500	20	30,000
June 30	6,000	$24	$144,000				7,500	23.2	174,000
Sept. 2				4,500	23.2	104,400	3,000	23.2	69,600
Nov. 15	1,000	25	25,000				4,000	38.6	154,400
Dec. 31	Balances					$154,400	4,000	$	$