LIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 72 $ 300 $ 21,600 8 Purchase 144 360 51,840 11 Sale 96 1,000 96,000 30 Sale 60 1,000 60,000 May 8 Purchase 120 400 48,000 10 Sale 72 1,000 72,000 19 Sale 36 1,000 36,000 28 Purchase 120 440 52,800 June 5 Sale 72 1,050 75,600 16 Sale 96 1,050 100,800 21 Purchase 216 480 103,680 28 Sale 108 1,050 113,400 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4 , using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
3/1/21, 9:32 PM
LIFO Perpetual Inventory
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:
Number
Date Transaction of Units Per Unit Total
Apr. 3 Inventory
72
$ 300 $ 21,600
8 Purchase
144
360
51,840
11 Sale
96
1,000
96,000
30 Sale
60
1,000
60,000
May 8 Purchase
120
400
48,000
10 Sale
72
1,000
72,000
19 Sale
36
1,000
36,000
28 Purchase
120
440
52,800
June 5 Sale
72
1,050
75,600
16 Sale
96
1,050 100,800
21
Purchase
216
480
103,680
28 Sale
108
1,050 113,400
Required:
1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one
illustrated in Exhibit 4 , using the last-in, first-out method. Under LIFO, if units are in inventory at two different
costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit
cost first in the Inventory Unit Cost column.
Dunne Co.
Schedule of Cost of Goods Sold
LIFO Method
For the Three Months Ended June 30
Purchases
Cost of Goods Sold
Inventory
Date Quantity Unit CostTotal Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost
$
$
Apr. 3
72
300
21,600
$
72
300
21,600
Apr. 8
144
360
51,840
144
360
51,840
https://cxp.cengage.com/activityservice/run/html5/handler.jsp?id%=6e.engagenow.com&xdm_c=activityService_activity_1614660547500&xdm_p=1
Page 1 of 3
Transcribed Image Text:3/1/21, 9:32 PM LIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 72 $ 300 $ 21,600 8 Purchase 144 360 51,840 11 Sale 96 1,000 96,000 30 Sale 60 1,000 60,000 May 8 Purchase 120 400 48,000 10 Sale 72 1,000 72,000 19 Sale 36 1,000 36,000 28 Purchase 120 440 52,800 June 5 Sale 72 1,050 75,600 16 Sale 96 1,050 100,800 21 Purchase 216 480 103,680 28 Sale 108 1,050 113,400 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4 , using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Dunne Co. Schedule of Cost of Goods Sold LIFO Method For the Three Months Ended June 30 Purchases Cost of Goods Sold Inventory Date Quantity Unit CostTotal Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost $ $ Apr. 3 72 300 21,600 $ 72 300 21,600 Apr. 8 144 360 51,840 144 360 51,840 https://cxp.cengage.com/activityservice/run/html5/handler.jsp?id%=6e.engagenow.com&xdm_c=activityService_activity_1614660547500&xdm_p=1 Page 1 of 3
$
$
72
300
21,600
Apr. 11
96
360
34,560
96
360
34,560
72
Apr. 30
60
May 8
120
400
48,000
May 10
72
May 19
36
May 28
120
440
52,800
June 5
72
1,050
75,600
June 16
June 21
216
480
103,680
June 28
108
1,050
113,400
June 30 Balances
$
2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.
Total sales
Total cost of goods sold $
Gross profit from sales $
3. Determine the ending inventory cost on June 30.
$
Transcribed Image Text:$ $ 72 300 21,600 Apr. 11 96 360 34,560 96 360 34,560 72 Apr. 30 60 May 8 120 400 48,000 May 10 72 May 19 36 May 28 120 440 52,800 June 5 72 1,050 75,600 June 16 June 21 216 480 103,680 June 28 108 1,050 113,400 June 30 Balances $ 2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period. Total sales Total cost of goods sold $ Gross profit from sales $ 3. Determine the ending inventory cost on June 30. $
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education