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:

Date TransactionNumber of UnitsPer UnitTotal

Jan. 1 Inventory7,800 $71.00 $553,800

10 Purchase23,400 81.00 1,895,400

28 Sale11,700 142.00 1,661,400

30 Sale3,900 142.00 553,800

Feb. 5 Sale1,560 142.00 221,520

10 Purchase56,160 83.50 4,689,360

16 Sale28,080 152.00 4,268,160

28 Sale26,520 152.00 4,031,040

Mar. 5 Purchase46,800 85.50 4,001,400

14 Sale31,200 152.00 4,742,400

25 Purchase7,800 86.00 670,800

30 Sale27,300 152.00 4,149,600

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.

Midnight Supplies Schedule of Cost of Goods Sold Weighted Average Cost Method For the Three Months Ended March 31

PurchasesCost of Goods SoldInventory

DateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal Cost

Jan. 1 $$

Jan. 10$$

Jan. 28 $$

Jan. 30

Feb. 5

Feb. 10

Feb. 16

Feb. 28

Mar. 5

Mar. 14

Mar. 25

Mar. 30

Mar. 31Balances $ $

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

Total sales$

Total cost of goods sold$

Gross profit$

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