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LIFO Perpetual Inventory The beginning inventory of merchandise at Rhodes 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 54 $600 $32,400 8 Purchase 108 720 77,760 11 Sale 72 2,000 144,000 30 Sale 45 2,000 90,000 May 8 Purchase 90 800 72,000 10 Sale 54 2,000 108,000 19 Sale 27 2,000 54,000 28 Purchase 90 880 79,200 June 5 Sale 54 2,100 113,400 16 Sale 72 2,100 151,200 21 Purchase 162 960 155,520 28 Sale 81 2,100 170,100 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 Rhodes Co. Perpetual Inventory Account LIFO 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 10 May 19 May 28 - 1 I - - June 5 June 16 June 21 June 28 June 30 Balances 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period. Total sales Total cost of merchandise sold Gross profit 3. Determine the ending inventory cost on June 30. Periodic Inventory by Three Methods Dymac Appliances uses the periodic inventory system. Details regarding the inventory of appliances at January 1, purchases invoices during the next 12 months, and the inventory count at December 31 are summarized as follows: Purchases Invoices Inventory Inventory Count, Model 1st 2nd 3rd January 1 December 31 A10 $ 29 4 at 5 32 4 at $ 35 5 B15 8 at $92 4 at 83 3 at 89 6 at 96 7 E60 3 at 71 3 at 61 15 at 64 9 at 66 5 G83 7 at 246 6 at 254 5 at 264 10 at 263 9 134 12 at 82 10 at 84 16 at 91 16 at 92 13 M90 2 at 124 2 at 126 3 at 144 3 at 146 5 070 5 at 151 4 at 161 4 at 166 7 at 171 8 Required: 1. Determine the cost of the inventory on December 31 by the first-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. If units are in inventory at two different costs, enter the units PURCHASED MOST RECENTLY first. Dymac Appliances Cost of the Inventory-FIFO Method December 31 Model Quantity Unit Cost Total Cost A10 A10 B15 B15 E60 683 134 M90 M90 070 070 Total 2. Determine the cost of the inventory on December 31 by the last-in, first-out method. If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. If units are in inventory at two different costs, enter the OLDEST units first. Dymac Appliances Cost of the Inventory-LIFO Method December 31 Model Quantity Unit Cost Total Cost A10 A10 B15 E60 E60 G83 683 334 334 M90 M90 M90 070 070 Total 3. Determine the cost of the inventory on December 31 by the weighted average cost method. Dymac Appliances Cost of the Inventory-Weighted Average Method December 31 Model Quantity Unit Cost Total Cost A10 B15 E60 G83 334 M90 070 Total 4. would be preferred for income tax purposes in periods of rising prices