FIFO perpetual inventory Obj. 2, 3The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $ 30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Instructions Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. Determine the gross profit from sales for the period. Answer Check Figure: $214,474 Determine the ending inventory cost on June 30. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out
FIFO perpetual inventory Obj. 2, 3The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $ 30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000 Instructions Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. Determine the gross profit from sales for the period. Answer Check Figure: $214,474 Determine the ending inventory cost on June 30. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
PR 6-1B
FIFO perpetual inventory
Obj. 2, 3The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
| Date | Transaction | Number of Units | Per Unit | Total | |
|---|---|---|---|---|---|
| Apr. 3 | Inventory | 25 | $1,200 | $ 30,000 | |
| 8 | Purchase | 75 | 1,240 | 93,000 | |
| 11 | Sale | 40 | 2,000 | 80,000 | |
| 30 | Sale | 30 | 2,000 | 60,000 | |
| May 8 | Purchase | 60 | 1,260 | 75,600 | |
| 10 | Sale | 50 | 2,000 | 100,000 | |
| 19 | Sale | 20 | 2,000 | 40,000 | |
| 28 | Purchase | 80 | 1,260 | 100,800 | |
| June 5 | Sale | 40 | 2,250 | 90,000 | |
| 16 | Sale | 25 | 2,250 | 56,250 | |
| 21 | Purchase | 35 | 1,264 | 44,240 | |
| 28 | Sale | 44 | 2,250 | 99,000 |
Instructions
-
Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.
-
Determine the total sales and the total cost of goods sold for the period.
Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. -
Determine the gross profit from sales for the period.
AnswerCheck Figure: $214,474
-
Determine the ending inventory cost on June 30.
-
Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?
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Step 1 Calculation of Records of purchases, Sales, Inventory using FIFO Method
VIEWStep 2 Calculation of Total Sales and Cost of Sales
VIEWStep 3 Journalizing the entries in sales and cost of goods sold account
VIEWStep 4 Calculation of Gross Profit for the period and Ending Inventory cost on June 30
VIEWStep 5 Calculation of ending Inventory using LIFO Method and comparisions
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