FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:Date TransactionNumberof UnitsPer UnitTotalApr. 3 Inventory66 $450 $29,700 8 Purchase132 540 71,280 11 Sale88 1,500 132,000 30 Sale55 1,500 82,500 May 8 Purchase110 600 66,000 10 Sale66 1,500 99,000 19 Sale33 1,500 49,500 28 Purchase110 660 72,600 June 5 Sale66 1,575 103,950 16 Sale88 1,575 138,600 21 Purchase198 720 142,560 28 Sale99 1,575 155,925 Required:1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.Dunne Co.Schedule of Cost of Goods SoldFIFO MethodFor the Three Months Ended June 30 PurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostApr. 3 fill in the blank 1$fill in the blank 2$fill in the blank 3Apr. 8fill in the blank 4$fill in the blank 5$fill in the blank 6 fill in the blank 7fill in the blank 8fill in the blank 9fill in the blank 10fill in the blank 11fill in the blank 12Apr. 11 fill in the blank 13$fill in the blank 14$fill in the blank 15fill in the blank 16fill in the blank 17fill in the blank 18fill in the blank 19fill in the blank 20fill in the blank 21Apr. 30 fill in the blank 22fill in the blank 23fill in the blank 24fill in the blank 25fill in the blank 26fill in the blank 27May 8fill in the blank 28fill in the blank 29fill in the blank 30 fill in the blank 31fill in the blank 32fill in the blank 33fill in the blank 34fill in the blank 35fill in the blank 36May 10 fill in the blank 37fill in the blank 38fill in the blank 39fill in the blank 40fill in the blank 41fill in the blank 42fill in the blank 43fill in the blank 44fill in the blank 45May 19 fill in the blank 46fill in the blank 47fill in the blank 48fill in the blank 49fill in the blank 50fill in the blank 51May 28fill in the blank 52fill in the blank 53fill in the blank 54 fill in the blank 55fill in the blank 56fill in the blank 57fill in the blank 58fill in the blank 59fill in the blank 60June 5 fill in the blank 61fill in the blank 62fill in the blank 63fill in the blank 64fill in the blank 65fill in the blank 66June 16 fill in the blank 67fill in the blank 68fill in the blank 69fill in the blank 70fill in the blank 71fill in the blank 72June 21fill in the blank 73fill in the blank 74fill in the blank 75 fill in the blank 76fill in the blank 77fill in the blank 78fill in the blank 79fill in the blank 80fill in the blank 81June 28 fill in the blank 82fill in the blank 83fill in the blank 84fill in the blank 85fill in the blank 86fill in the blank 87fill in the blank 88fill in the blank 89fill in the blank 90June 30Balances $fill in the blank 91 $fill in the blank 922. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.Record sale fill in the blank 94 fill in the blank 96Record cost fill in the blank 98 fill in the blank 1003. Determine the gross profit from sales for the period.$fill in the blank 1014. Determine the ending inventory cost as of June 30.$fill in the blank 1025. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Name: FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data
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Description: FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:Date TransactionNumberof UnitsPer UnitTotalApr. 3 Inventory66 $450 $29,700 8 Purchase132 540 71,280 1

Working Note: (1.) Calculation of Total Sales: Date Units Selling Price Total Sales Apr. 11 88…

Answered: FIFO Perpetual Inventory The beginning…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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FIFO Perpetual Inventory

The 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	Total
Apr. 3	Inventory	66	$450	$29,700
8	Purchase	132	540	71,280
11	Sale	88	1,500	132,000
30	Sale	55	1,500	82,500
May 8	Purchase	110	600	66,000
10	Sale	66	1,500	99,000
19	Sale	33	1,500	49,500
28	Purchase	110	660	72,600
June 5	Sale	66	1,575	103,950
16	Sale	88	1,575	138,600
21	Purchase	198	720	142,560
28	Sale	99	1,575	155,925

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

Dunne Co. Schedule of Cost of Goods Sold FIFO Method For the Three Months Ended June 30
	Purchases	Cost of Goods Sold	Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Apr. 8	fill in the blank 4	$fill in the blank 5	$fill in the blank 6				fill in the blank 7	fill in the blank 8	fill in the blank 9
fill in the blank 10	fill in the blank 11	fill in the blank 12
Apr. 11				fill in the blank 13	$fill in the blank 14	$fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
fill in the blank 19	fill in the blank 20	fill in the blank 21
Apr. 30				fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25	fill in the blank 26	fill in the blank 27
May 8	fill in the blank 28	fill in the blank 29	fill in the blank 30				fill in the blank 31	fill in the blank 32	fill in the blank 33
fill in the blank 34	fill in the blank 35	fill in the blank 36
May 10				fill in the blank 37	fill in the blank 38	fill in the blank 39	fill in the blank 40	fill in the blank 41	fill in the blank 42
fill in the blank 43	fill in the blank 44	fill in the blank 45
May 19				fill in the blank 46	fill in the blank 47	fill in the blank 48	fill in the blank 49	fill in the blank 50	fill in the blank 51
May 28	fill in the blank 52	fill in the blank 53	fill in the blank 54				fill in the blank 55	fill in the blank 56	fill in the blank 57
fill in the blank 58	fill in the blank 59	fill in the blank 60
June 5				fill in the blank 61	fill in the blank 62	fill in the blank 63	fill in the blank 64	fill in the blank 65	fill in the blank 66
June 16				fill in the blank 67	fill in the blank 68	fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
June 21	fill in the blank 73	fill in the blank 74	fill in the blank 75				fill in the blank 76	fill in the blank 77	fill in the blank 78
fill in the blank 79	fill in the blank 80	fill in the blank 81
June 28				fill in the blank 82	fill in the blank 83	fill in the blank 84	fill in the blank 85	fill in the blank 86	fill in the blank 87
fill in the blank 88	fill in the blank 89	fill in the blank 90
June 30	Balances					$fill in the blank 91			$fill in the blank 92

2. 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.

Record sale	fill in the blank 94
		fill in the blank 96
Record cost	fill in the blank 98
		fill in the blank 100

3. Determine the gross profit from sales for the period.
$fill in the blank 101

4. Determine the ending inventory cost as of June 30.
$fill in the blank 102

5. 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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