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 $14,400 Apr. 3 8 11 Inventory Purchase Sale $300 360 1,000 1,000 34,560 64,000 30 Sale May 8 Purchase 400 40,000 32,000 48,000 10 Sale 1,000 19 Sale 1,000 440 28 Purchase June 5 Sale 24,000 35,200 50,400 67,200 69,120 75,600 1,050 1,050 480 16 21 28 Required: Sale Purchase Sale 1,050 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 Unit Cost Total Cost Inventory Unit Cost Date Quantity Total Cost Quantity Quantity Total Cost Apr. 3 |Apr. 8 Apr. 11 Apr. 30 May 8 May 10 May 19 May 28 June 5 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. 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