Question

1. The following units of a particular item were available for sale during the calendar year:

   Jan. 1	Inventory	30,000	units at $30.00
   Mar. 18	Sale	24,000	units
   May 2	Purchase	54,000	units at $31.00
   Aug. 9	Sale	45,000	units
   Oct. 20	Purchase	21,000	units at $32.10

   The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of merchandise sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary.

   Schedule of Cost of Merchandise Sold Weighted Average Cost Flow Method
   	Purchases			Cost of Merchandise Sold			Inventory
   Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
   Jan. 1								$	$
   Mar. 18					$	$
   May 2		$	$
   Aug. 9
   Oct. 20
   Dec. 31	Balances					$		$	$

Answer 1

Answer