Weighted Average Cost Method with Perpetual Inventory

The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

Date		Transaction	Number of Units		Per Unit		Total
Apr. 3		Inventory	40		$670		$26,800
8		Purchase	120		690		82,800
11		Sale	60		1,120		67,200
30		Sale	50		1,120		56,000
May 8		Purchase	100		700		70,000
10		Sale	80		1,120		89,600
19		Sale	30		1,120		33,600
28		Purchase	120		707		84,840
June 5		Sale	60		1,260		75,600
16		Sale	40		1,260		50,400
21		Purchase	180		712		128,160
28		Sale	190		1,260		239,400

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method.

Rhodes Co. Perpetual Inventory Account Weighted Average Cost Method For the three months ended June 30
	Purchases			Cost of Merchandise Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3								$	$
Apr. 8		$	$
Apr. 11					$	$
Apr. 30
May 8
May 10
May 19
May 28
June 5
June 16
June 21
June 28
June 30	Balances					$			$

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

Total sales	$
Total cost of merchandise sold	$
Gross profit from sales	$

3. Determine the ending inventory cost on June 30. $