Question

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

Jan. 1	Inventory	10,000 units at $75.00
Mar. 18	Sale	8,000 units
May 2	Purchase	18,000 units at $77.50
Aug. 9	Sale	15,000 units
Oct. 20	Purchase	7,000 units at $80.25

The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. This answer from this problem is 1,758,750. I need the step by step solution

Answer 1

Weighted average cost method :
Date		Receipts			Issues			Balance
	Qty	Rate	Amount	Qty	Rate	Amount	Qty	Rate	Amount
Jan-01							10000	75	750000
Mar-18				8000	75	600000	2000	75	150000	Inventory balance after each sale
May-02	18000	77.5	1395000				20000	77.25	1545000
Aug-09				15000	77.25	1158750	5000	77.25	386250	Inventory balance after each sale
Oct-20	7000	80.25	561750				12000	79	948000
Cost of goods sold = (8000*75)+(15000*77.25)					1758750
Ending inventory					948000