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: Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 78 $525 $40,950 8 Purchase 156 630 98,280 11 Sale 104 1,750 182,000 30 Sale 65 1,750 113,750 May 8 Purchase 130 700 91,000 10 Sale 78 1,750 136,500 19 Sale 39 1,750 68,250 28 Purchase 130 770 100,100 June 5 Sale 78 1,840 143,520 16 Sale 104 1,840 191,360 21 Purchase 234 840 196,560 28 Sale 117 1,840 215,280 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 Merchandise Sold Unit Cost column 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 78 $ 525 $ 40,950 Apr. 8 156 $ 630 $ 98,280 78 525 40,950 156 630 98,280 Apr. 11 78 $ 525 $ 40,950 104 13 Apr. 30 65 1,750 113,750 1,750 113,750 May 8 130 700 91,000 130 7,000 91,000 May 10 78 May 19 May 28 130 June 5 June 16 June 21 234 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 Accounts Receivable Sales Record cost Cost of Merchandise Sold Merchandise 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 inventory using the last-in, first-out method to be higher or lower? Lower Feedback