28.

1. Periodic Inventory by Three Methods

   The units of an item available for sale during the year were as follows:

   Jan. 1	Inventory	16 units @ $45
   Feb. 17	Purchase	7 units @ $47
   Jul. 21	Purchase	5 units @ $48
   Nov. 23	Purchase	19 units @ $48

   There are 16 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.

   a. Determine the inventory cost by the first-in, first-out method. $fill in the blank 1

   b. Determine the inventory cost by the last-in, first-out method. $fill in the blank 2

   c. Determine the inventory cost by the weighted average cost method. $fill in the blank 3

27.

1. FIFO 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	54		$300		$16,200
   8		Purchase	108		360		38,880
   11		Sale	72		1,000		72,000
   30		Sale	45		1,000		45,000
   May 8		Purchase	90		400		36,000
   10		Sale	54		1,000		54,000
   19		Sale	27		1,000		27,000
   28		Purchase	90		440		39,600
   June 5		Sale	54		1,050		56,700
   16		Sale	72		1,050		75,600
   21		Purchase	162		480		77,760
   28		Sale	81		1,050		85,050

   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							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
   May 8	fill in the blank 28	fill in the blank 29	fill in the blank 30				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
   May 10				fill in the blank 37	fill in the blank 38	fill in the blank 39	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
   May 19				fill in the blank 46	fill in the blank 47	fill in the blank 48	fill in the blank 49	fill in the blank 50	fill in the blank 51
   May 28	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
   							fill in the blank 58	fill in the blank 59	fill in the blank 60
   June 5				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
   June 16				fill in the blank 67	fill in the blank 68	fill in the blank 69	fill in the blank 70	fill in the blank 71	fill in the blank 72
   June 21	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 28				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
   June 30	Balances					$fill in the blank 91			$fill in the blank 92

   2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

   Record sale	Accounts ReceivableCashFees EarnedMerchandise InventorySales	fill in the blank 94
   	Accounts ReceivableCashFees EarnedMerchandise InventorySales		fill in the blank 96
   Record cost	Accounts ReceivableCashCost of Merchandise SoldSalesMerchandise Inventory	fill in the blank 98
   	Accounts PayableAccounts ReceivableCashCost of Merchandise SoldMerchandise Inventory		fill in the blank 100

   3. Determine the gross profit from sales for the period. $fill in the blank 101

   4. Determine the ending inventory cost as of June 30. $fill in the blank 102

   5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?

   HigherLower