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		Transaction	Number of Units		Per Unit		Total
Jan. 1		Inventory	7,300		$71.00		$518,300
10		Purchase	21,900		81.00		1,773,900
28		Sale	10,950		142.00		1,554,900
30		Sale	3,650		142.00		518,300
Feb. 5		Sale	1,460		142.00		207,320
10		Purchase	52,560		83.50		4,388,760
16		Sale	26,280		152.00		3,994,560
28		Sale	24,820		152.00		3,772,640
Mar. 5		Purchase	43,800		85.50		3,744,900
14		Sale	29,200		152.00		4,438,400
25		Purchase	7,300		86.00		627,800
30		Sale	25,550		152.00		3,883,600

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
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total 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. 31	Balances

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.