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: Number Date Transaction 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 a 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 Date Purchases Quantity Purchases Purchases Cost of Goods Sold Cost of Goods Sold Cost of Goods Sold Inventory Inventory Inventory Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 48 450 21,600 Apr. 8 96 $ 540 $ 51,840 48 450 21,600 96 540 31,840 Apr. 11 48 $ 450 $ 21,600 48 540 5,920 16 540 8,640 Apr. 30 40 540 21,600 40 540 21,600 May 8 80 600 48,000 40 540 21,600 80 600 48,000 May 10 40 540 21,600 8 600 43,200 8 600 4,800 May 19 24 600 14,400 48 600 28,800 May 28 80 660 52,800 48 600 28,800 80 660 52,800 June 5 48 600 28,800 80 80 660 52,800 June 16 64 660 42,240 16 660 10,560 June 21 144 720 103,680 16 660 10,560 144 720 103,680 June 28 16 660 10,560 88 720 63,360 56 720 40,320 June 30 Balances $ $

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 8EB: Calculate the cost of goods sold dollar value for B65 Company for the month, considering the...

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Unsure wether the chart is filled out correctly or not. If need changes, please explain why.

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 lowerrr unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost

column.

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that

all sales were on account.

Description Debit Credit

Record sale

____Acct Title______ D ___ C _____

Record Cost

____Acct Title______ D ___ C _____

3. Determine the gross profit from sales for the period. $

4. Determine the ending inventory cost as of June 30. $

5. Based preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?