PR 6-1B FIFO perpetual inventory Obj. 2, 3 The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Apr. 3 Inventory 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sale 19 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale Number of Units 25 75 40 30 60 50 20 80 40 25 35 44 Per Unit $1,200 1,240 2,000 2,000 1,260 2,000 2,000 1,260 2,250 2,250 1,264 2,250 Total $ 30,000 93,000 80,000 60,000 75,600 100,000 40,000 100,800 90,000 56,250 44,240 99,000 Sale Instructions 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30. 5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower? B C D E F G H K Purchases Unit Cost Total Cost Date Quantity Apr. 3 8 Inventory Unit Cost $1,200 $ $1,200 $ $1,240 $ Total Cost 30,000 30,000 93,000 75 $1,240 $ 93,000 11 30 May 8 60 $1,260 $ 75,600 $1,240 $1,240 $1,240 $1,260 $74.400 $ 37 200 $ 37200 $ 75,600 10 Cost of Goods Sold Unit Total Quantity Cost Cost Quantity 25 25 75 25 $1,200 $ 30,000 15 $1,240 $ 18,600 60 30 $1,240 $ 37,200 30 30 60 30 $1,240 $ 37,200 20 $1,260 $ 25 200 40 20 $1260 $ 25,200 20 20 80 20 $1,260 $ 25,200 20 $1,260 $ 25,200 60 25 $1,260 $ 31,500 35 35 35 35 $1,260 $ 44,100 9 $1264 $ 11,376 26 $ 310,776 19 28 80 $1,260 $ 100,800 $1,260 $1,260 $1,260 $1,260 $ 50.400 $ 25,200 $ 25,200 $ 100 800 June 5 16 21 35 $1,260 $1,260 $1,260 $1,264 $1264 $ 44,240 $ $ $ $ 75,600 44,100 44,100 44,240 28 $1,264 30 Balances $ $ 32,864 32,864 Pr. 6-1B 39 10 JOURNAL 11 12 Description Debit Credit 43 14 45 Accounts Receivable Sales 11 16 Cost of Goods Sold Inventory Gross profit for the sales period 7 18 49 50 51 52 53 54 55 56 57 58 59 30 51 52 3 Ending inventory cost Inventory under LIFO would be