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	60		$600		$36,000
8		Purchase	120		720		86,400
11		Sale	80		2,000		160,000
30		Sale	50		2,000		100,000
May 8		Purchase	100		800		80,000
10		Sale	60		2,000		120,000
19		Sale	30		2,000		60,000
28		Purchase	100		880		88,000
June 5		Sale	60		2,100		126,000
16		Sale	80		2,100		168,000
21		Purchase	180		960		172,800
28		Sale	90		2,100		189,000

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.

Schedule of Cost of Goods Sold FIFO Method For the Three Months Ended June 30 Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 60 $ 600 $ $ 36,000 60 600 36,000 Apr. 8 120 $ 720 86,400 120 720 86,400 60 $ Apr. 11 Apr. 30 50 50 50 May 8 100 800 80,000 100 May 10 May 19 May 28 100 880 88,000 June 5 June 16 IIIII III um June 21 180 960 172,800 June 28 June 30 Balances $ $ 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. If an amount box does not require an entry, leave it blank. Record sale Record cost 3. Determine the gross profit from sales for the period. $ 4. Determine the ending inventory cost as of June 30. * $ 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower? Record sale Record cost Accounts Receivable Cash Fees Earned Inventory Sales