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 60 $600 $36,000 8 Purchase 120 720 86,400 11 Sale 80 2,000 160,000 30 Sale SO 2.000 100,000 May 8 Purchase 100 800 80,000 10 Sale 00 2,000 120,000 19 Sale 30 2,000 60,000 28 Purchase 100 880 88,000 June 5 Sale 60 2,100 126,000 16 Sale 30 2,100 168,000 Purchase 180 960 172,800 28 Sale 90 2.100 189,000 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. U units are in inventory at two different costs, enter the units with the LOWER unit cost ist in the cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column Dunne Co. Comore Check My Work uses remaining Previou hp 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, 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 36,000 60 600 36,000 Apr. B 120 720 86,400 120 720 86,400 60 600 60 600 36,000 100 720 72.000 Apr. 11 20 720 14,400 36.000 50 50 720 36,000 Apr. 30 720 720 36,000 Maya 100 300 30,000 100 BOO 30,000 50 220 36,000 70 BO 61,600 May 10 60 DOO 40,000 Previous Next more Check My Wom 60 HOO 40,000 May 19 30 800 24,000 30 880 26,400 880 May 28 100 880 88,000 100 BRO 88,000 June 5 60 800 48,000 June 16 880 June 21 180 960 172,800 180 960 172,800 880 - June 28 960 June 30 Balances 2. Determine the total sales and the total cost of merchandise sold for the period. Joumalize the entries in the sales and cost of merchandise sold accounts, Assume that all sales were on account. Record sale Record cout 3. Determine the gross profit from sales for the period Previous Next more Check My Work USO 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? Omore Check My Work uses remaining hop D CERC ( o 3 4 5 6 B 7 o W E R T Y ak S A D G H F