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 TransactionNumberof UnitsPer UnitTotalApr. 3 Inventory42 $225 $9,450 8 Purchase84 270 22,680 11 Sale56 750 42,000 30 Sale35 750 26,250 May 8 Purchase70 300 21,000 10 Sale42 750 31,500 19 Sale21 750 15,750 28 Purchase70 330 23,100 June 5 Sale42 790 33,180 16 Sale56 790 44,240 21 Purchase126 360 45,360 28 Sale63 790 49,770 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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Description: 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 TransactionNumberof UnitsPer UnitTotalApr. 3 Inventory42 $225 $9,450 8 Purchase84 270 22,680 11 Sale56 75

In first in first out (FIFO) method, the inventory purchased first is sold first. The inventory…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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	42		$225	$9,450
8	Purchase	84		270	22,680
11	Sale	56		750	42,000
30	Sale	35		750	26,250
May 8	Purchase	70		300	21,000
10	Sale	42		750	31,500
19	Sale	21		750	15,750
28	Purchase	70		330	23,100
June 5	Sale	42		790	33,180
16	Sale	56		790	44,240
21	Purchase	126		360	45,360
28	Sale	63		790	49,770

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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