The beginning inventory for RTE Office Supplies and data on purchases and sales for a three-month period

The beginning inventory for RTE Office Supplies and data on purchases and sales for a three-month period are shown in Problem 7-1A.

Instructions

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual
inventory record similar to the one illustrated in Exhibit 5, using the weighted average
cost method.

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from
sales for the period.

3. Determine the ending inventory cost as of August 31, 2014


Answer:


Date
Purchases Cost of Merchandise Sold Inventory
Quantity
Unit
Cost
Total
Cost Quantity Unit Cost
Total
Cost Quantity Unit Cost
Total
Cost
June 1 500 30.00 15,000
10 1,500 34.00 51,000 2,000 33.00 66,000
28 750 33.00 24,750 1,250 33.00 41,250
30 250 33.00 8,250 1,000 33.00 33,000
July 5 100 33.00 3,300 900 33.00 29,700
10 3,600 35.00 126,000 4,500 34.60 155,700
16 1,800 34.60 62,280 2,700 34.60 93,420
28 1,700 34.60 58,820 1,000 34.60 34,600
Aug. 5 3,000 35.80 107,400 4,000 35.50 142,000
14 2,000 35.50 71,000 2,000 35.50 71,000
25 500 36.00 18,000 2,500 35.60 89,000
30 1,750 35.60 62,300 750 35.60 26,700
31 Balances 290,700 26,700
1.
2. Total sales……………………………………………………………$483,800*
Total cost of merchandise sold………………………………… 290,700
Gross profit………………………………………………………… $193,100
*$483,800 = $37,500 + $13,000 + $5,500 + $100,800 + $102,000 + $120,000 + $105,000



3. $26,700 (750 units × $35.60)