LIFOPerpetual 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:

DateTransactionNumber

of UnitsPer UnitTotalApr. 3Inventory84$525$44,1008Purchase168630105,84011Sale1131,750197,75030Sale711,750124,250May 8Purchase14070098,00010Sale841,750147,00019Sale421,75073,50028Purchase140770107,800June 5Sale841,840154,56016Sale1121,840206,08021Purchase252840211,68028Sale1261,840231,840

Required:

1.Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated inExhibit 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 30Purchases Cost of Merchandise Sold Inventory Date Quantity Unit CostTotal Cost Quantity Unit CostTotal Cost Quantity Unit Cost 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, the total cost of merchandise sold, and the gross profit from sales for the period.

Total sales$Total cost of merchandise soldGross profit$

3.Determine the ending inventory cost on June 30.