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.