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 Inventory90 $450 $40,500 8 Purchase180 540 97,200 11 Sale121 1,500 181,500 30 Sale76 1,500 114,000 May 8 Purchase150 600 90,000 10 Sale90 1,500 135,000 19 Sale45 1,500 67,500 28 Purchase150 660 99,000 June 5 Sale90 1,575 141,750 16 Sale120 1,575 189,000 21 Purchase270 720 194,400 28 Sale135 1,575 212,625 Required:1. Record the inventory, purchases, and cost of merchandise 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 Merchandise Sold Unit Cost column and LOWER unit cost first 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 Inventory90 $450 $40,500 8 Purchase180 540 97,200 11 Sale121

Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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	Total
Apr. 3	Inventory	90	$450	$40,500
8	Purchase	180	540	97,200
11	Sale	121	1,500	181,500
30	Sale	76	1,500	114,000
May 8	Purchase	150	600	90,000
10	Sale	90	1,500	135,000
19	Sale	45	1,500	67,500
28	Purchase	150	660	99,000
June 5	Sale	90	1,575	141,750
16	Sale	120	1,575	189,000
21	Purchase	270	720	194,400
28	Sale	135	1,575	212,625

Required:

1. Record the inventory, purchases, and cost of merchandise 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

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