FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 48 $600 $28,800 8 Purchase 96 720 69,120 11 Sale 64 2,000 128,000 30 Sale 40 2,000 80,000 May 8 Purchase 80 800 64,000 10 Sale 48 2,000 96,000 19 Sale 24 2,000 48,000 28 Purchase 80 880 70,400 June 5 Sale 48 2,100 100,800 16 Sale 64 2,100 134,400 21 Purchase 144 960 138,240 28 Sale 72 2,100 151,200 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, us 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 Merchandise So and in the Inventory Unit Cost column. Dunne Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30 Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr. 3 48 $ 600 28,800 48 600 28,800 Apr. 8 96 $ 720 69,120 96 720 69,120 96 X $ $ pr. 11 96 720 69,120 96 X Apr. 30 96 X May 8 May 10 May 19 May 28 June 5 lune 16 June 16 June 21 - June 28 June 30 Balances 2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. Record sale -- Record cost 3. Determine the gross profit from sales for the period. 5. Determine the ending inventory cost as of June 30. 5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower? Feedback