EX 7-8 Weighted average cost flow method under perpetual inventory system The following units of a particular item were available for sale during the calendar war Inventory Sale Jan. 1 Mar. 18 May 2 Aug. 9 Oct. 20 Purchase Sale Purchase 30,000 units at $30.00 24,000 units 54,000 units at $31.00 45,000 units 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 in Exhibit 5. EX 7-10 Perpetual inventory using FIFO OBJ. 3 Assume that the business in Exercise 7-9 maintains a perpetual inventory system. Deter- mine the cost of merchandise sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method. Present the data in the form illustrated in Exhibit 3. EXHIBIT 5 Entries and Perpetual Inventory Account (Weighted Average) Item 127B Jan 4 Accounts Receivable Sales 4 Cost of Merchandise Sold Merchandise Inventory 21,000 21,000 14,000 14,000 Purchases Unit Quantity Cost Cost of Merchandise Sold Unit Total Quantity Cost Cost Inventory Unit Total Total Cost Cost Com 11,200 Date 10 Merchandise Inventory Accounts Payable 11,200 700 20.00 14,000 10,800 10 500 22.40 11,200 10.800 22 Accounts Receivable Sales 22 Cost of Merchandise Sold Merchandise Inventory Quantity 1,000 300 800 440 200 800 800 360 240 21.50 21.50 7,740 20.00 20.00 21.50 21.50 21.50 22.85 22.85 7,740 5,160 20,000 6,000 17,200 9,460 4,300 18,280 18,280 7,740 23.30 13,980 30 31 600 Balances 7,200 26,900 28 Accounts Receivable Sales 28 Cost of Merchandise Sold Merchandise Inventory 7,200 5,160 5.160 Cost of merchandise sold January 31 inventory 13,980 30 Merchandise Inventory Accounts Payable 13,980 Entries and Perpetual Inventory Account (FIFO) EXHIBIT 3 Item 127B jan. 4 Accounts Receivable Sales 4 Cost of Merchandise Sold Merchandise Inventory 21,000 21,000 14,000 14,000 Purchases Unit Quantity Cost Cost of Merchandise Sold Unit Total Quantity Cost Cost 11,200 10 Merchandise Inventory Accounts Payable Date 11.2001 Total Cost Inventory Unit Quantity Cost 1,000 20.00 300 20.00 300 20.00 500 22.40 Total Cost 20,000 6,000 6,000 11,200 700 20.00 14,000 10,800 500 22.40 11,200 22 Accounts Receivable Sales 22 Cost of Merchandise Sold Merchandise Inventory 10,800 7,344 7,344 300 60 240 20.00 22.40 22.40 6,000 1,344 5,376 440 200 7,200 600 23.30 13,980 200 600 22.40 22.40 22.40 23.30 28 Accounts Receivable Sales 28 Cost of Merchandise Sold Merchandise Inventory 7.200 9,856 4.480 4.480 13,980 18,460 5,376 31 Balances 26,720 5.376 30 Merchandise Inventory Accounts Payable 13,980 13,980 Cost of merchandise sold January 31 inventory