Dublin Corporation provides the following information related to its inventory during the month of October $2023.$

Date Units Per unit

October $1$ Inventory on hand $3,000$ units at cost of $$6\mathrm{.}00$ per unit

October $9$ Sold $2,400$ units for $$10\mathrm{.}00$ each

October $12$ Purchase $1,200$ units at a cost of $$6\mathrm{.}30$ per unit

October $18$ Sold $1,000$ units for $$10\mathrm{.}20$ each

October $24$ Purchase $1,400$ units at a cost of $$7\mathrm{.}20$ per unit

October $31$ Inventory on hand $2,200$ units

Required:

Using calculations based on a PERPETUAL inventory system, determine the inventory balance Dublin would report in its October $31$ balance sheet and the cost of goods sold it would report in its October income statement using each of the following cost flow methods.

$1.$Determine the cost assigned to ending inventory and to cost of goods sold using the FIFO method.

Perpetual FIFO

Cost of Goods Available for Sale Cost of Goods Sold $-$ October $9$ Cost of Goods Sold $-$ October $18$ Ending Inventory

Number of units Cost per unit Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory

Beginning inventory $3,000$ $$6\mathrm{.}00$ $$18,0002,400$ $$6\mathrm{.}00$ $$14,400600$ $$6\mathrm{.}00$ $$3,600$ $$6\mathrm{.}00$ $$0$

Purchase of October $121,200$ $$6\mathrm{.}307,560$ $$6\mathrm{.}30$ $$6\mathrm{.}300$ $$6\mathrm{.}30$ #REF!

Purchase of October $241,400$ $$7\mathrm{.}2010,080$ $$7\mathrm{.}20$ $$7\mathrm{.}20$ $$7\mathrm{.}200$

Total $5,600$ $$35,6402,400$ $$14,400600$ $$3,600$ #REF!

$2.$Determine the cost assigned to ending inventory and to cost of goods sold using the LIFO method.

Perpetual LIFO

Cost of Goods Available for Sale Cost of Goods Sold $-$ October $9$ Cost of Goods Sold $-$ October $18$ Ending Inventory

Number of units Cost per unit Cost of Goods Available for Sale Number of units sold Cost per unit Cost of Goods Sold Number of units sold Cost per unit Cost of Goods Sold # of units in ending inventory Cost per unit Ending Inventory

Beginning inventory $3,000$ $$6\mathrm{.}00$ $$18,0002,400$ $$6\mathrm{.}00$ $$14,400$ $$6\mathrm{.}00$ $$6\mathrm{.}00$ $$0$

Purchase of October $121,200$ $$6\mathrm{.}307,560$ $$6\mathrm{.}30$ $$6\mathrm{.}30$ $$0$ $$6\mathrm{.}30$ $$0$

Purchase of October $241,400$ $$7\mathrm{.}2010,080$ $$7\mathrm{.}20$ $$7\mathrm{.}20$ $$7\mathrm{.}200$

Total $5,600$ $$35,640$ $$14,400$ $$0$ $$0$

$3.$ Compute the amount of gross profit under the two methods:

Perpetual FiFO Perpetual LIFO

Sales

Cost of goods sold

Gross profit