Question

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Date		Transaction	Number of Units		Per Unit		Total
Apr. 3		Inventory	78		$300		$23,400
8		Purchase	156		360		56,160
11		Sale	105		1,000		105,000
30		Sale	66		1,000		66,000
May 8		Purchase	130		400		52,000
10		Sale	78		1,000		78,000
19		Sale	39		1,000		39,000
28		Purchase	130		440		57,200
June 5		Sale	78		1,050		81,900
16		Sale	104		1,050		109,200
21		Purchase	234		480		112,320
28		Sale	117		1,050		122,850

Required:

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 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Dunne Co. Schedule of Cost of Goods Sold LIFO Method For the Three Months Ended June 30
	Purchases			Cost of Goods Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total 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 goods sold, and the gross profit from sales for the period.

Total sales	$
Total cost of goods sold	$
Gross profit from sales	$

3. Determine the ending inventory cost as of June 30.
$

Answer 1

Cost of merchandise schedule :

Date	Quantity purchase	Unit Cost	Purchase Cost	Quantity Sold	Unit Cost	Cost of goods sold	Ending inventory unit	Unit Cost	Ending inventory balance
Apr 3							78	300	23400
Apr 8	156	360	56160				78 156	300 360	23400 56160
Apr 11				105	360	37800	78 51	300 360	23400 18360
Apr 30				51 15	360 300	18360 4500	63	300	18900
May 8	130	400	52000				63 130	300 400	18900 52000
May 10				78	400	31200	63 52	300 400	18900 20800
May 19				39	400	15600	63 13	300 400	18900 5200
May 28	130	440	57200				63 13 130	300 400 440	18900 5200 57200
June 5				78	440	34320	63 13 52	300 400 440	18900 5200 22880
June 16				52 13 39	440 400 300	22880 5200 11700	24	300	7200
June 21	234	480	112320				24 234	300 480	7200 112320
June 28				117	480	56160	24 117	300 480	7200 56160
June 30	Balance					237720			63360

2) Total Sales = 601950

Total Cost of goods sold = 237720

Gross profit on sales = 364230

Ending inventory = 63360