Question The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows: Transaction Units Per Unit Total
Question
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:
Transaction Units Per Unit Total
Apr 3- Inventory 25 $1200 $30000
Apr 8- Purchase 75 1240 93000
Apr 11- Sale 40 2000 80000
Apr 30- Sale 30 2000 60000
May 8- Purchase 60 1260 75600
May 10- Sale 50 2000 100000
May 19- Sale 20 2000 40000
May 28- Purchase 80 1260 100000
June 5- Sale 40 2250 90000
June 16- Sale 25 2250 56250
June 21- Purchase 35 1264 44240
June 28- Sale 44 2250 99000
Instructions:
1. record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the first in first out method.
Date | Purchases | Cost of Merchandise Sold | Inventory | |||||||
Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | ||
April | 3 | 25 | $1,200 | $30,000 | ||||||
8 | ||||||||||
11 | ||||||||||
30 | ||||||||||
May | 8 | |||||||||
10 | ||||||||||
19 | ||||||||||
28 | ||||||||||
June | 5 | |||||||||
16 | ||||||||||
21 | ||||||||||
28 | ||||||||||
30 | Balances | |||||||||
Date | Purchases | Cost of Merchandise Sold | Inventory | |||||||
Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | ||
Apr. | 3 | 25 | $1,200 | $30,000 | ||||||
8 | ||||||||||
11 | ||||||||||
30 | ||||||||||
May | 8 | |||||||||
10 | ||||||||||
19 | ||||||||||
28 | ||||||||||
June | 5 | |||||||||
16 | ||||||||||
21 | ||||||||||
28 | ||||||||||
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.
3. Determine the gross profit from sales for the period.
4. Determine the ending inventory cost on June 30, 2016.
5. Based upon the proceeding data, would you expect the inventory using the last in, first out method to be higher or lower?
7-2B
The beginning inventory for Dunne Co. and data on purchases and sales for the three-month period are shown in Problem 7-1B.
1. Record the inventory, purchases, and cost of merchandice sold data in a perpetual inventory record similar to the oen illustratedin Exhibit 5, using the last-in, first-out method.
2. Determine the total sales, the total cost of the merchandice sold, and the gross profit from sales for the period.
3. Determine the ending inventory cost on June 30, 2016.
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