Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $375 $18,000
8 Purchase 96 450 43,200
11 Sale 64 1,250 80,000
30 Sale 40 1,250 50,000
May 8 Purchase 80 500 40,000
10 Sale 48 1,250 60,000
19 Sale 24 1,250 30,000
28 Purchase 80 550 44,000
June 5 Sale 48 1,315 63,120
16 Sale 64 1,315 84,160
21 Purchase 144 600 86,400
28 Sale 72 1,315 94,680

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. 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 fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Apr. 8 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9
fill in the blank 10 fill in the blank 11 fill in the blank 12
Apr. 11 fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
fill in the blank 19 fill in the blank 20 fill in the blank 21
Apr. 30 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27
May 8 fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33
fill in the blank 34 fill in the blank 35 fill in the blank 36
May 10 fill in the blank 37 fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42
fill in the blank 43 fill in the blank 44 fill in the blank 45
May 19 fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51
May 28 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57
fill in the blank 58 fill in the blank 59 fill in the blank 60
June 5 fill in the blank 61 fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 fill in the blank 66
June 16 fill in the blank 67 fill in the blank 68 fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72
June 21 fill in the blank 73 fill in the blank 74 fill in the blank 75 fill in the blank 76 fill in the blank 77 fill in the blank 78
fill in the blank 79 fill in the blank 80 fill in the blank 81
June 28 fill in the blank 82 fill in the blank 83 fill in the blank 84 fill in the blank 85 fill in the blank 86 fill in the blank 87
fill in the blank 88 fill in the blank 89 fill in the blank 90
June 30 Balances $fill in the blank 91 $fill in the blank 92

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 fill in the blank 94 fill in the blank 95
Sales fill in the blank 97 fill in the blank 98
Record cost Cost of Goods Sold fill in the blank 100 fill in the blank 101
Inventory fill in the blank 103 fill in the blank 104

3. Determine the gross profit from sales for the period. $fill in the blank 105

4. Determine the ending inventory cost as of June 30. $fill in the blank 106

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

5. Structure your speech to make it easy to listen to

Answered: 1 week ago

Question

1. Describe the goals of informative speaking

Answered: 1 week ago