FIFO Perpetual InventoryThe beginning inventory of merchandise 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 Inventory48 $450 $21,600 8 Purchase96 540 51,840 11 Sale64 1,500 96,000 30 Sale40 1,500 60,000 May 8 Purchase80 600 48,000 10 Sale48 1,500 72,000 19 Sale24 1,500 36,000 28 Purchase80 660 52,800 June 5 Sale48 1,575 75,600 16 Sale64 1,575 100,800 21 Purchase144 720 103,680 28 Sale72 1,575 113,400 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 Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

Name: FIFO Perpetual InventoryThe beginning inventory of merchandise at Dunn
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Description: FIFO Perpetual InventoryThe beginning inventory of merchandise 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 Inventory48 $450 $21,600 8 Purchase9

FIFO is the inventory costing method where it is assume that the oldest inventory will be sold…

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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 of merchandise 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	48		$450	$21,600
8	Purchase	96		540	51,840
11	Sale	64		1,500	96,000
30	Sale	40		1,500	60,000
May 8	Purchase	80		600	48,000
10	Sale	48		1,500	72,000
19	Sale	24		1,500	36,000
28	Purchase	80		660	52,800
June 5	Sale	48		1,575	75,600
16	Sale	64		1,575	100,800
21	Purchase	144		720	103,680
28	Sale	72		1,575	113,400

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 Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

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