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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 $7,000$ $$71\mathrm{.}00$ $$497,000$

$10$ Purchase $21,00081\mathrm{.}001,701,000$

$28$ Sale $10,500142\mathrm{.}001,491,000$

$30$ Sale $3,500142\mathrm{.}00497,000$

Feb. $5$ Sale $1,400142\mathrm{.}00198,800$

$10$ Purchase $50,40083\mathrm{.}504,208,400$

$16$ Sale $25,200152\mathrm{.}003,830,400$

$28$ Sale $23,800152\mathrm{.}003,617,600$

Mar. $5$ Purchase $42,00085\mathrm{.}503,591,000$

$14$ Sale $28,000152\mathrm{.}004,256,000$

$25$ Purchase $7,00086\mathrm{.}00602,000$

$30$ Sale $24,500152\mathrm{.}003,724,000$

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.

Date Purchases

Quantity Purchases

Unit Cost Purchases

Total Cost Cost of

Goods Sold

Quantity Cost of

Goods Sold

Unit Cost Cost of

Goods Sold

Total Cost Inventory

Quantity Inventory

Unit Cost Inventory

Total Cost

Jan. $1$ fill in the blank $1$

$7,000$

$fill in the blank $2$

$71$

$fill in the blank $3$

$497,000$

Jan. $10$ fill in the blank $4$

$21,000$

$fill in the blank $5$

$81$

$fill in the blank $6$

$1,701,000$

fill in the blank $7$

$28,000$

fill in the blank $8$

fill in the blank $9$

Jan. $28$ fill in the blank $10$

$fill in the blank $11$

$fill in the blank $12$

fill in the blank $13$

fill in the blank $14$

fill in the blank $15$

Jan. $30$ fill in the blank $16$

fill in the blank $17$

fill in the blank $18$

fill in the blank $19$

fill in the blank $20$

fill in the blank $21$

Feb. $5$ fill in the blank $22$

fill in the blank $23$

fill in the blank $24$

fill in the blank $25$

fill in the blank $26$

fill in the blank $27$

Feb. $10$ fill in the blank $28$

$50,400$

fill in the blank $29$

$83\mathrm{.}50$

fill in the blank $30$

$4,208,400$

fill in the blank $31$

fill in the blank $32$

fill in the blank $33$

Feb. $16$ fill in the blank $34$

fill in the blank $35$

fill in the blank $36$

fill in the blank $37$

fill in the blank $38$

fill in the blank $39$

Feb. $28$ fill in the blank $40$

fill in the blank $41$

fill in the blank $42$

fill in the blank $43$

fill in the blank $44$

fill in the blank $45$

Mar. $5$ fill in the blank $46$

$42,000$

fill in the blank $47$

$85\mathrm{.}5$

fill in the blank $48$

$3,591,000$

fill in the blank $49$

fill in the blank $50$

fill in the blank $51$

Mar. $14$ fill in the blank $52$

fill in the blank $53$

fill in the blank $54$

fill in the blank $55$

fill in the blank $56$

fill in the blank $57$

Mar. $25$ fill in the blank $58$

$7,000$

fill in the blank $59$

$86$

fill in the blank $60$

$602,000$

fill in the blank $61$

fill in the blank $62$

fill in the blank $63$

Mar. $30$ fill in the blank $64$

fill in the blank $65$

fill in the blank $66$

fill in the blank $67$

fill in the blank $68$

fill in the blank $69$

Mar. $31$ Balances $fill in the blank $70$

$fill in the blank $71$

$2.$ 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 $fill in the blank $72$

Total cost of goods sold $fill in the blank $73$

Gross profit $fill in the blank $74$

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

fill in the blank $1$ of $1$$

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$1.$ When the perpetual inventory system is used, revenue is recorded each time a sale is made along with an entry to record the cost of the goods sold. Under the weighted average method the average unit cost must be determined after each purchase by dividing the total of cost of goods on hand by the total units on hand. The cost of goods sold is computed multiplying the average unit cost on the date of sales by the units sold. The inventory balance after a sale is computed by multiplying the average unit cost by the units on hand.

$2.$ Total sales are obtained by taking the number of units sold times their sale prices for all sales and adding these amounts together. The total cost of goods sold can be obtained by adding the costs in the perpetual inventory record. Sales minus cost of goods sold equals gross profit.

$3.$ The ending inventory cost can be taken from the perpetual inventory record in Part $(1).$