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	36		$525		$18,900
8		Purchase	72		630		45,360
11		Sale	48		1,750		84,000
30		Sale	30		1,750		52,500
May 8		Purchase	60		700		42,000
10		Sale	36		1,750		63,000
19		Sale	18		1,750		31,500
28		Purchase	60		770		46,200
June 5		Sale	36		1,840		66,240
16		Sale	48		1,840		88,320
21		Purchase	108		840		90,720
28		Sale	54		1,840		99,360

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.

Answer 1

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record

	Purchase			Cost of goods sold			Ending inventory
Date	quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost	Quantity	Unit cost	Total cost
Apr 3							36	525	18900
Apr 8	72	630	45360				36 72	525 630	18900 45360
Apr 11				48	630	30240	36 24	525 630	18900 15120
Apr 30				24 6	630 525	15120 3150	30	525	15750
May 8	60	700	42000				30 60	525 700	15750 42000
May 10				36	700	25200	30 24	525 700	15750 16800
May 19				18	700	12600	30 6	525 700	15750 4200
May 28	60	770	46200				30 6 60	525 700 770	15750 4200 46200
June 5				36	770	27720	30 6 24	525 700 770	15750 4200 18480
June 16				24 6 18	770 700 525	18480 4200 9450	12	525	6300
June 21	108	840	90720				12 108	525 840	6300 90720
June 28				54	840	45360	12 54	525 840	6300 45360
June 30						191520			51660