The beginning inventory for Midnight Supplies and data on purchases and sales for a three-month period are as follows:
| 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 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.
2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period
3. Determine the ending inventory cost as of March 31.