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 7,500 $79.00 $592,500

10 Purchase 22,500 89.00 2,002,500

28 Sale 11,250 158.00 1,777,500

30 Sale 3,750 158.00 592,500

Feb. 5 Sale 1,500 158.00 237,000

10 Purchase 54,000 91.50 4,941,000

16 Sale 27,000 168.00 4,536,000

28 Sale 25,500 168.00 4,284,000

Mar. 5 Purchase 45,000 93.50 4,207,500

14 Sale 30,000 168.00 5,040,000

25 Purchase 7,500 94.00 705,000

30 Sale 26,250 168.00 4,410,000

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.

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 fill in the blank 1 $fill in the blank 2 $fill in the blank 3

Jan. 10 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 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 fill in the blank 29 fill in the blank 30 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 fill in the blank 47 fill in the blank 48 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 fill in the blank 59 fill in the blank 60 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.

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 75