**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.

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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 Numberof Units Per Unit Total Jan. 1   Inventory 7,500   $79.00   $592,500   10   Purchase 22,500   89.00   2,002,500   28   Sale 11,250   158.00   1,777,500   30   Sale 3,750   158.00   592,500   Feb. 5   Sale 1,500   158.00   237,000   10   Purchase 54,000   91.50   4,941,000   16   Sale 27,000   168.00   4,536,000   28   Sale 25,500   168.00   4,284,000   Mar. 5   Purchase 45,000   93.50   4,207,500   14   Sale 30,000   168.00   5,040,000   25   Purchase 7,500   94.00   705,000   30   Sale 26,250   168.00   4,410,000   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…

Periodic Inventory Using FIFO, LIFO, and Weighted Average Cost Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 13 units at $3,800 $49,400 Aug. 7 Purchase 19 units at $3,900 74,100 Dec. 11 Purchase 13 units at $4,100 53,300   45 units $176,800 There are 18 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost using (a) the first-in, first-out (FIFO) method; (b) the last-in, first-out (LIFO) method; and (c) the weighted average cost method (Round per unit cost to two decimal places and your final answer to the nearest whole dollar).