Requirement 3. Compute cost of goods sold and gross profit using the weighted-average inventory costing method. (Round weighted average cost per unit to the nearest cent and all other amounts to the nearest dollar.)

Begin by computing the cost of goods sold and cost of ending merchandise inventory using the weighted-average inventory costing method. Enter the transactions in chronological order, calculating new inventory on hand balances after each transaction. Once all of the transactions have been entered into the perpetual record, calculate the quantity and total cost of merchandise inventory purchased, sold, and on hand at the end of the period.

Purchases Cost of Goods Sold Inventory on Hand Total Total Unit Total Unit Cost Unit Cost Date Quantity Cost Quantity Cost Quantity Cost Cost May 1 23 Totals Totals - P - May 1 Beginning merchandise inventory 11 Purchase 23 Sale 28 tires @ $ 7 tires @ $ 14 tires @ $ 21 tires @ $ 25 tires @ $ 70 each 80 each 86 each 82 each 86 each 26 Purchase 29 Sale