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:
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 | 78 | $225 | $17550 | ||||
| 8 | Purchase | 156 | 270 | 42120 | ||||
| 11 | Sale | 104 | 750 | 78000 | ||||
| 30 | Sale | 65 | 750 | 48750 | ||||
| May 8 | Purchase | 130 | 300 | 39000 | ||||
| 10 | Sale | 78 | 750 | 58500 | ||||
| 19 | Sale | 39 | 750 | 29250 | ||||
| 28 | Purchase | 130 | 330 | 42900 | ||||
| June 5 | Sale | 78 | 790 | 61620 | ||||
| 16 | Sale | 104 | 790 | 82160 | ||||
| 21 | Purchase | 234 | 360 | 84240 | ||||
| 28 | Sale | 117 | 790 | 92430 |
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.
| Dunne Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30 |
|||||||||
| Purchases | Cost of Merchandise Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Apr. 3 | $ | $ | |||||||
| Apr. 8 | $ | $ | |||||||
| Apr. 11 | $ | $ | |||||||
| Apr. 30 | |||||||||
| May 8 | |||||||||
| May 10 | |||||||||
| May 19 | |||||||||
| May 28 | |||||||||
| June 5 | |||||||||
| June 16 | |||||||||
| June 21 | |||||||||
| June 28 | |||||||||
| June 30 | Balances | $ | $ |
2. Determine the total sales and the total cost of merchandise sold for the period.
| Record sale | |||
| Record cost | |||
3. Determine the gross profit from sales for the period.
$
4. Determine the ending inventory cost as of June 30.
$
5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
