26.

1. LIFO Perpetual Inventory

   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	66		$525		$34,650
   8		Purchase	132		630		83,160
   11		Sale	88		1,750		154,000
   30		Sale	55		1,750		96,250
   May 8		Purchase	110		700		77,000
   10		Sale	66		1,750		115,500
   19		Sale	33		1,750		57,750
   28		Purchase	110		770		84,700
   June 5		Sale	66		1,840		121,440
   16		Sale	88		1,840		161,920
   21		Purchase	198		840		166,320
   28		Sale	99		1,840		182,160

   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.

   Dunne Co. Schedule of Cost of Merchandise Sold 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							fill in the blank 1	$fill in the blank 2	$fill in the blank 3
   Apr. 8	fill in the blank 4	$fill in the blank 5	$fill in the blank 6				fill in the blank 7	fill in the blank 8	fill in the blank 9
   							fill in the blank 10	fill in the blank 11	fill in the blank 12
   Apr. 11				fill in the blank 13	$fill in the blank 14	$fill in the blank 15	fill in the blank 16	fill in the blank 17	fill in the blank 18
   							fill in the blank 19	fill in the blank 20	fill in the blank 21
   Apr. 30				fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25	fill in the blank 26	fill in the blank 27
   				fill in the blank 28	fill in the blank 29	fill in the blank 30
   May 8	fill in the blank 31	fill in the blank 32	fill in the blank 33				fill in the blank 34	fill in the blank 35	fill in the blank 36
   							fill in the blank 37	fill in the blank 38	fill in the blank 39
   May 10				fill in the blank 40	fill in the blank 41	fill in the blank 42	fill in the blank 43	fill in the blank 44	fill in the blank 45
   							fill in the blank 46	fill in the blank 47	fill in the blank 48
   May 19				fill in the blank 49	fill in the blank 50	fill in the blank 51	fill in the blank 52	fill in the blank 53	fill in the blank 54
   							fill in the blank 55	fill in the blank 56	fill in the blank 57
   May 28	fill in the blank 58	fill in the blank 59	fill in the blank 60				fill in the blank 61	fill in the blank 62	fill in the blank 63
   							fill in the blank 64	fill in the blank 65	fill in the blank 66
   							fill in the blank 67	fill in the blank 68	fill in the blank 69
   June 5				fill in the blank 70	fill in the blank 71	fill in the blank 72	fill in the blank 73	fill in the blank 74	fill in the blank 75
   							fill in the blank 76	fill in the blank 77	fill in the blank 78
   							fill in the blank 79	fill in the blank 80	fill in the blank 81
   June 16				fill in the blank 82	fill in the blank 83	fill in the blank 84	fill in the blank 85	fill in the blank 86	fill in the blank 87
   				fill in the blank 88	fill in the blank 89	fill in the blank 90
   				fill in the blank 91	fill in the blank 92	fill in the blank 93
   June 21	fill in the blank 94	fill in the blank 95	fill in the blank 96				fill in the blank 97	fill in the blank 98	fill in the blank 99
   							fill in the blank 100	fill in the blank 101	fill in the blank 102
   June 28				fill in the blank 103	fill in the blank 104	fill in the blank 105	fill in the blank 106	fill in the blank 107	fill in the blank 108
   							fill in the blank 109	fill in the blank 110	fill in the blank 111
   June 30	Balances					$fill in the blank 112			$fill in the blank 113

   2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

   Total sales	$fill in the blank 114
   Total cost of merchandise sold	fill in the blank 115
   Gross profit	$fill in the blank 116

   3. Determine the ending inventory cost on June 30. $fill in the blank 117

25.

1. Retail Method; Gross Profit Method

   Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows:

   	Cost		Retail
   Celebrity Tan
   Merchandise inventory, August 1	$400,000		$520,000
   Transactions during August:
   Purchases (net)	4,605,000		5,980,000
   Sales			6,152,000
   Ranchworks Co.
   Merchandise inventory, March 1	$259,000
   Transactions during March through November:
   Purchases (net)	3,442,000
   Sales	5,296,000
   Estimated gross profit rate	34%

   Required:

   1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details of the computations.

   Celebrity Tan Cost of the Merchandise Inventory August 31

   		Cost	Retail
   Merchandise available for saleMerchandise inventory, at estimated costMerchandise inventory, August 1Merchandise inventory, August 31, at retail priceSales returns and allowancesSales		$- Select -	$- Select -
   Merchandise available for saleMerchandise inventory, at estimated costMerchandise inventory, August 31, at retailNet purchasesSales returns and allowancesSales		- Select -	- Select -
   Merchandise available for saleMerchandise inventory, at estimated costMerchandise inventory, August 1Merchandise inventory, August 31, at retailSales returns and allowancesSales		$- Select -	$- Select -
   Ratio of cost to retail price:	fill in the blank 5420ef095004020_10%
   Merchandise available for saleMerchandise inventory, at estimated costMerchandise inventory, August 1Merchandise inventory, August 31, at retail priceNet purchasesSales			- Select -
   Merchandise available for saleMerchandise inventory, August 1Merchandise inventory, August 31, at retailNet purchasesSales returns and allowancesSales			$- Select -
   Merchandise available for saleMerchandise inventory, at estimated costMerchandise inventory, August 1Net purchasesSales returns and allowancesSales			$- Select -

   2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations.

   Ranchworks Co. Cost of the Merchandise Inventory November 30

   		Cost
   Estimated cost of merchandise soldEstimated merchandise inventory, November 30Merchandise available for saleMerchandise inventory, March 1Sales returns and allowancesSales		$- Select -
   Estimated cost of merchandise soldEstimated gross profitEstimated merchandise inventory, November 30Merchandise available for saleNet purchasesSales returns and allowancesSales		- Select -
   Estimated cost of merchandise soldEstimated gross profitEstimated merchandise inventory, November 30Merchandise available for saleMerchandise inventory, March 1Sales returns and allowancesSales		$- Select -
   Estimated cost of merchandise soldEstimated gross profitEstimated merchandise inventory, November 30Merchandise available for saleMerchandise inventory, March 1Net purchasesSales	$- Select -
   Less estimated gross profitLess estimated merchandise inventory, November 30Less merchandise available for saleLess merchandise inventory, March 1Less net purchasesLess sales returns and allowancesLess sales	- Select -
   Estimated cost of merchandise soldLess estimated gross profitLess sales returns and allowancesMerchandise available for saleMerchandise inventory, March 1Net purchasesSales		- Select -
   Estimated gross profitEstimated merchandise inventory, November 30Merchandise available for saleMerchandise inventory, March 1Net purchasesSales returns and allowancesSales		$- Select -

   2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $193,300 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November? $fill in the blank 6963fcfe1fb3fe0_1