Question

Calculator 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: Number Date Transaction of Units Per Unit Total Jan. 1 Inventory 7,700 $73.00 $562,100 10 Purchase 23,100 83.00 1,917,300 28 Sale 11,550 146.00 1,686,300 30 Sale 3,850 146.00 562,100 Feb. 5 Sale 1,540 146.00 224,840 10 Purchase 55,440 85.50 4,740,120 16 Sale 27,720 156.00 4,324,320 28 Sale 26,1807 156.00 4,084,080 Mar. 5 Purchase 46,200 87.50 4,042,500 14 Sale 30,800 156.00 4,804,800 25 Purchase 7,700 88.00 677,600 30 Sale 26,950 156.00 4,204,200 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, L average cost method. Round unit cost to two decimal places, if necessary. Round all total cost amounts to the nearest dollar. Activa

I believe the cost of goods sold may be wrong. please no hand written answers, thank you

Answer 1

In weighted average cost method per unit cost is derived by dividing total cost of goods available for sale by total units available at each transaction of sale or purchase.

Ans 1 Schedule of Cost of Goods sold Weighted Average Cost Method For the three month ended March 31 Purchase Cost of Good Sold Inventory Quantity Unit cost Total cost $73.00 $5,62,100 $80.50 $24,79,400 $80.50 $15,49,625 $80.50 $12,39,700 $80.50 $11,15,730 $84.50 $58,55,850 $84.50 $35,13,510 $84.50 $13,01,300 $86.75 $53,43,800 $86.75 $26,71,900 $87.00 $33,49,500 $87.00 $10,04,850 Unit cost Unit cost Total cost Total cost Date Quantity Quantity Jan 1 Jan 10 Jan 28 7,700 $83.00 $19,17,300 30,800 19,250 23,100 $80.50 $80.50 $80.50 $9,29,775 $3,09,925 $1,23,970 11,550 3,850 1,540 Jan 30 Feb 5 15,400 13,860 69,300 41,580 55,440 $85.50 $47,40,120 Feb 10 $84.50 $84.50 Feb 16 $23,42,340 $22,12,210 27,720 26,180 Feb 28 15,400 61,600 30,800 38,500 11,550 Mar 5 Mar 14 Mar 25 $87.50 $40,42,500 46,200 $86.75 $26,71,900 30,800 7,700 $88.00 $6,77,600 Mar 30 Total Mar 31 $87.00 $23,44,650 $1,09,34,770 26,950 $1,13,77,520 1,28,590 1,32,440 $87.00 $10,04,850 Balances 11,550 Total Sales Total Cost of Good sold $1,09,34,770 Gross Profit Total $1,98,90,640 Quantity Sales price Ans 2 $16,86,300 $146 11550 $146 $5,62,100 $89,55,870 3850 $146 $2,24,840 1540 27720 $156 $43,24,320 $40,84,080 $156 26180 $156 $48,04,800 30800 $156 $42,04,200 26950 128590 $1,98,90,640 $10,04,850 Ending Inventory cost as of March, 31 Ans 3