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:
Ch. 6 Assignment eBook Show Me How 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 66 Per Unit Total Apr. 3 Inventory $525 $34,650 8 Purchase 132 630 83,160 11 Sale 88 1,750 154,000 30 Sale 55 1,750 96,250 May 8 Purchase 110 700 77,000 10 Sale 66 1,750 115,500 19 Sale 33 1,750 57,750 28 Purchase 110 770 84,700 June 5 Sale 66 1,840 121,440 16 Sale 88 1,840 161,920 21 Purchase 198 840 166,320 28 Sale 99 1,840 182,160 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. Dunne Co. 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. Dunne Co. Schedule of Cost of Goods Sold FIFO Method For the Three Months Ended June 30 Cost of Goods Sold Quantity Unit Cost Inventory Purchases Unit Cost Date Quantity Total Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 $ Apr. 8 132 $ 630 $ 83,160 88 $ Apr. 11 Apr. 30 May 8 110 700 77,000 May 10 May 19 Ch. 6 Assignment eBook Show Me How . Apr. 30 May 8 110 1107 700 | 77,000 77,000 May 10 May 19 May 28 110 770 84,700 84,700 June 5 June 16 June 21 198 840 166,320 166,320 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 Check My Work Next Ch. 6 Assignment eBook Show Me How 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 Accounts Receivable Sales Record cost Cost of Goods Sold Inventory 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? Lower Feedback Check My Work 1. FIFO means that the first units purchased are assumed to be the first to be sold. Therefore, ending inventory is made up of the most recent purchases. Think of your inventory in terms of "layers. The first
