Question
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 28 units for $35 each.
  
| Purchases on December 7 | 18 units @ $14.00 cost | 
| Purchases on December 14 | 33 units @ $21.00 cost | 
| Purchases on December 21 | 28 units @ $25.00 cost | 
Required:
Monson sells 28 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method. (Round your per unit costs to 2 decimal places.)
  
Answer:
Step 1
Perpetual inventory system:-in this method, a record of sales and purchase of inventory is the continuous process. This helps in maintaining the inventory balance of the company. Also helps in calculating the ending balance of inventory units.
Step 2
Determining the cost assigned to ending inventory when cost are assigned based on weighted Average Method:-

Ending Inventory as of Dec 31 is $1,125.96.
Cost of goods sold is $518.56.