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FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

FIFO Perpetual Inventory

The beginning inventory 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 48 $450 $21,600
8 Purchase 96 540 51,840
11 Sale 64 1,500 96,000
30 Sale 40 1,500 60,000
May 8 Purchase 80 600 48,000
10 Sale 48 1,500 72,000
19 Sale 24 1,500 36,000
28 Purchase 80 660 52,800
June 5 Sale 48 1,575 75,600
16 Sale 64 1,575 100,800
21 Purchase 144 720 103,680
28 Sale 72 1,575 113,400

Required:

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 Goods Sold Unit Cost column and in the Inventory Unit Cost column.

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

Determine the gross profit from sales for the period

Determine the ending inventory cost as of June 30.

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

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