LIFO

LIFO 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 Per Unit Total of Units Apr. 3 Inventory 60 $225 $13,500 8 Purchase 120 270 32,400 11 Sale 80 750 60,000 30 Sale 50 750 37,500 May 8 Purchase 100 300 30,000 10 Sale 60 750 45,000 19 Sale 30 750 22,500 28 Purchase 100 330 33,000 June 5 Sale 60 790 47,400 16 Sale 80 790 63,200 21 Purchase 180 360 64,800 28 Sale 90 790 71,100 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column Dunne Co. Schedule of Cost of Merchandise Sold LIFO 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 Apr 1 Apr 11 Apr 30 May May 10 May 19 May 19 May 28 - 1 - lunes Dune 16 une 21 une 20 June 30 Balances 2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period Total sales Total cost of merchandise sold Gross profit 3. Determine the ending inventory cost on June 30