# Weighted Average Cost Method with Perpetual InventoryThe beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:DateTransactionNumberof UnitsPer UnitTotalJan. 1Inventory7,500\$75.00\$562,50010Purchase22,50085.001,912,50028Sale11,250150.001,687,50030Sale3,750150.00562,500Feb. 5Sale1,500150.00225,00010Purchase54,00087.504,725,00016Sale27,000160.004,320,00028Sale25,500160.004,080,000Mar. 5Purchase45,00089.504,027,50014Sale30,000160.004,800,00025Purchase7,50090.00675,00030Sale26,250160.004,200,000Required: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 SuppliesSchedule of Cost of Goods SoldWeighted Average Cost MethodFor the Three Months Ended March 31 PurchasesCost of Goods SoldInventoryDateQuantity Unit CostTotal CostQuantity Unit CostTotal CostQuantity Unit CostTotal CostJan. 1\$\$Jan. 10\$\$ Jan. 28\$\$ Jan. 30  Feb. 5  Feb. 10  Feb. 16  Feb. 28  Mar. 5  Mar. 14  Mar. 25  Mar. 30  Mar. 31Balances\$\$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.\$

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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

\$75.00

\$562,500

10

Purchase
22,500

85.00

1,912,500

28

Sale
11,250

150.00

1,687,500

30

Sale
3,750

150.00

562,500

Feb. 5

Sale
1,500

150.00

225,000

10

Purchase
54,000

87.50

4,725,000

16

Sale
27,000

160.00

4,320,000

28

Sale
25,500

160.00

4,080,000

Mar. 5

Purchase
45,000

89.50

4,027,500

14

Sale
30,000

160.00

4,800,000

25

Purchase
7,500

90.00

675,000

30

Sale
26,250

160.00

4,200,000

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

\$
\$
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.
\$

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Step 1

In the weighted average method, the average costs are determined by adding the cost of inventory and cost of purchases and then dividing it by sum of inventory units and inventory purchased

Step 2

The inventory schedule has been prepared as follows

Step 3

The sale value of goods has bee...

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