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	36	$600	$21,600
8	Purchase	72	720	51,840
11	Sale	48	2,000	96,000
30	Sale	30	2,000	60,000
May 8	Purchase	60	800	48,000
10	Sale	36	2,000	72,000
19	Sale	18	2,000	36,000
28	Purchase	60	880	52,800
June 5	Sale	36	2,100	75,600
16	Sale	48	2,100	100,800
21	Purchase	108	960	103,680
28	Sale	54	2,100	113,400

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

Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Goods Sold Quantity	Cost of Goods Sold Unit Cost	Cost of Goods Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
Apr. 3
Apr. 8
Apr. 8
Apr. 11
Apr. 11
Apr. 30
May 8
May 8
May 10
May 10
May 19
May 28
May 28
June 5
June 16
June 21
June 21
June 28
June 28
June 30	Balances

2. Determine the total sales and the total cost of goods sold for the period. Journalize summary entries for the sales and corresponding cost of goods sold for the period. Assume that all sales were on account. If an amount box does not require an entry, leave it blank.

Entries	Description	Debit	Credit
Record sale	Accounts PayableAccounts ReceivableCashInventorySales
	Accounts PayableAccounts ReceivableCashCost of Goods SoldSales
Record cost	Accounts PayableCashCost of Goods SoldInventorySales
	Accounts PayableAccounts ReceivableCashCost of Goods SoldInventory

3. Determine the gross profit from sales for the period. fill in the blank 1 of 1$

4. Determine the ending inventory cost as of June 30. fill in the blank 1 of 1$

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

HigherLower