**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 | 9,000 | $60.00 | $540,000 | | Jan. 10 | Purchase | 21,000 | 70.00 | 1,470,000 | | Jan. 28 | Sale | 10,250 | 140.00 | 1,435,000 | | Jan. 30 | Sale | 5,750 | 140.00 | 805,000 | | Feb. 5 | Sale | 3,500 | 140.00 | 490,000 | | Feb. 10 | Purchase | 39,500 | 75.00 | 2,962,500 | | Feb. 16 | Sale | 15,000 | 150.00 | 2,250,000 | | Feb. 28 | Sale | 10,000 | 150.00 | 1,500,000 | | Mar. 5 | Purchase | 25,000 | 82.00 | 2,050,000 | | Mar. 14 | Sale | 30,000 | 150.00 | 4,500,000 | | Mar. 25 | Purchase | 10,000 | 88.40 | 884,000 | | Mar. 30 | Sale | 19,000 | 150.00 | 2,850,000 | This table provides an overview of the inventory transactions including sales and purchases for Midnight Supplies over the first quarter of the year. The data is organized by date and type of transaction, listing the number of units, cost per unit, and total transaction amount. **Inventory Management Exercise** **Objective:** 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record using the weighted average cost method. Round unit costs to two decimal places if necessary, and round all total costs to the nearest dollar. **Table Overview:** - **Columns**: - **Date** - **Purchases**: - Quantity - Unit Cost - Total Cost - **Cost of Goods Sold**: - Quantity - Unit Cost - Total Cost - **Inventory**: - Quantity - Unit Cost - Total Cost **Dates to Record:** - **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) **Instructions:** 2. Calculate the following for the period: - Total Sales - Total Cost of Goods Sold - Gross Profit 3. Determine the ending inventory cost as of March 31. **Explanation of Process:** - For each transaction date, update the inventory records based on purchases and sales using the weighted average cost method. - After each transaction, compute the new average cost per unit for inventory. - On March 31, calculate and record the balance totals, total sales, cost of goods sold, gross profit, and ending inventory cost. This exercise helps in understanding how to maintain a perpetual inventory system and apply the weighted average cost method to real-life data.