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	25		$1,200		$30,000
8	Purchase	75		1,240		93,000
11	Sale	40		2,000		80,000
30	Sale	30		2,000		60,000
May 8	Purchase	60		1,260		75,600
10	Sale	50		2,000		100,000
19	Sale	20		2,000		40,000
28	Purchase	80		1,260		100,800
June 5	Sale	40		2,250		90,000
16	Sale	25		2,250		56,250
21	Purchase	35		1,264		44,240
28	Sale	44		2,250		99,000

Required:

1. Record the inventory, purchases, and cost of goods 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.

2. 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.

3. Determine the gross profit from sales for the period.

5. Based upon the preceding data, would you expect the ending inventory using the A method of inventory costing based on the assumption that the most recent inventory costs should be charged against revenue.last-in, first-out method to be higher or lower?