Weighted average cost method with perpetual inventory The beginning inventory at Midnight Supplies and data...
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Accounting
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
7,700
$75.00
$577,500
10
Purchase
23,100
85.00
1,963,500
28
Sale
11,550
150.00
1,732,500
30
Sale
3,850
150.00
577,500
Feb. 5
Sale
1,540
150.00
231,000
10
Purchase
55,440
87.50
4,851,000
16
Sale
27,720
160.00
4,435,200
28
Sale
26,180
160.00
4,188,800
Mar. 5
Purchase
46,200
89.50
4,134,900
14
Sale
30,800
160.00
4,928,000
25
Purchase
7,700
90.00
693,000
30
Sale
26,950
160.00
4,312,000
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.
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