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 of Units Date Transaction Per Unit Total Apr 3 Inventory 42 $225 $9,450 8 Purchase 84 270 22,680 11 Sale 56 750 42,000 30 Sale 35 750 26,250 May 8 Purchase 70 300 21,000 10 Sale 42 750 31,500 19 Sale 21 750 15,750 28 Purchase 70 330 23,100 June 5 Sale 42 790 33,180 16 Sale 56 790 44,240 21 Purchase 126 360 45,360 28 Sale 63 790 49,770 Required: 1. Record the inventory, purchases, and cost of merchandise soldata in perpetual inventory record similar to the one strated in ting the first in first out method. Under FIFO, 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 Solil FIFO Method For the three months ended June 30 Cost of Merchandise Sold Purchases Inventory Date Quantity Unit Cost Total Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Apr Apr. - Ap 11 Apr 0 MIT MY I I - May 10 I May 10 May 28 1 June 5 II June 16 II June 21 Nne 2 1 June 30 Balances 2. Determine the total de 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 Records Dewmine the root from sales for the period 4. Demine the ending wiventory cot so 30. 2. Determine the total sales and the total cost of merchandise sold for the period. Journaline the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. Record sale Record cost 2. Determine the gross profile from ales for the period 4. Determine the ending inventory cost a June 30 5. Based upon the preceding data, would you expect the inventory using the last in fint out method to be higher or lower