Question

1. Weighted Average Cost Method with Perpetual Inventory

   The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, 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 merchandise 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.

   Midnight Supplies Schedule of Cost of Merchandise Sold Weighted Average Cost Method For the three months ended March 31
   	Purchases			Cost of Merchandise 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 merchandise sold, and the gross profit from sales for the period.

   Total sales	$
   Total cost of merchandise sold	$
   Gross profit from sales	$

   3. Determine the ending inventory cost as of March 31.
   $

Check My Work

Answer 1

Answer 1
Midnight Supplies
Schedule of Cost of Merchandise Sold
Weighted Average Cost Method
For the three months ended March 31
	Purchases			Cost of Merchandise Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Jan. 1			$                     -			$                -	7,500.00	$ 75.00	$   562,500.00
Jan. 10	22,500.00	$ 85.00	$     1,912,500.00			$                -	30,000.00	$ 82.50	$2,475,000.00
Jan. 28			$                     -	11,250.00	$              82.50	$   928,125.00	18,750.00	$ 82.50	$1,546,875.00
Jan. 30			$                     -	3,750.00	$              82.50	$   309,375.00	15,000.00	$ 82.50	$1,237,500.00
Feb. 5			$                     -	1,500.00	$              82.50	$   123,750.00	13,500.00	$ 82.50	$1,113,750.00
Feb. 10	54,000.00	$ 87.50	$     4,725,000.00			$                -	67,500.00	$ 86.50	$5,838,750.00
Feb. 16			$                     -	27,000.00	$              86.50	$2,335,500.00	40,500.00	$ 86.50	$3,503,250.00
Feb. 28			$                     -	25,500.00	$              86.50	$2,205,750.00	15,000.00	$ 86.50	$1,297,500.00
Mar. 5	45,000.00	$ 89.50	$     4,027,500.00			$                -	60,000.00	$ 88.75	$5,325,000.00
Mar. 14			$                     -	30,000.00	$              88.75	$2,662,500.00	30,000.00	$ 88.75	$2,662,500.00
Mar. 25	7,500.00	$ 90.00	$        675,000.00			$                -	37,500.00	$ 89.00	$3,337,500.00
Mar. 30			$                     -	26,250.00	$              89.00	$2,336,250.00	11,250.00	$ 89.00	$1,001,250.00
Mar. 31	Balances						11,250.00	$ 89.00	$1,001,250.00
Answer 2
Total sales	$ 19,875,000.00
Total cost of merchandise sold	$ 10,901,250.00
Gross profit from sales	$   8,973,750.00
Working for answer 2
	Quantity	Unit Sale Price	Total Sales Value	Cost of Merchandise Sold	Gross Profit
Jan. 28	11,250.00	$ 150.00	$     1,687,500.00	$        928,125.00	$      759,375.00
Jan. 30	3,750.00	$ 150.00	$        562,500.00	$        309,375.00	$      253,125.00
Feb. 5	1,500.00	$ 150.00	$        225,000.00	$        123,750.00	$      101,250.00
Feb. 16	27,000.00	$ 160.00	$     4,320,000.00	$     2,335,500.00	$   1,984,500.00
Feb. 28	25,500.00	$ 160.00	$     4,080,000.00	$     2,205,750.00	$   1,874,250.00
Mar. 14	30,000.00	$ 160.00	$     4,800,000.00	$     2,662,500.00	$   2,137,500.00
Mar. 30	26,250.00	$ 160.00	$     4,200,000.00	$     2,336,250.00	$   1,863,750.00
Total			$    19,875,000.00	$    10,901,250.00	$   8,973,750.00
Answer 3
Determine the ending inventory cost as of March 31.
Value	Quantity
$        1,001,250.00	11,250.00