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 30,000 units at $30.00

Mar. 18 Sale 24,000units

May 2 Purchase 54,000 units at $31.00

Aug. 9 Sale 45,000 units

Oct. 20 Purchase 21,000 units at $32.10

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 inExhibit 5. 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

1-Jan

18-Mar

2-May

9-Aug

20-Oct

31-Dec Balances