Question

FIFO Perpetual Inventory

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	Number of Units		Per Unit		Total
Apr. 3		Inventory	84		$450		$37,800
8		Purchase	168		540		90,720
11		Sale	112		1,500		168,000
30		Sale	70		1,500		105,000
May 8		Purchase	140		600		84,000
10		Sale	84		1,500		126,000
19		Sale	42		1,500		63,000
28		Purchase	140		660		92,400
June 5		Sale	84		1,575		132,300
16		Sale	112		1,575		176,400
21		Purchase	252		720		181,440
28		Sale	126		1,575		198,450

Required:

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.

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.

Record sale	Accounts Receivable
	Sales
Record cost	Cost of Goods Sold
	Inventory

3. Determine the gross profit from sales for the period.
$

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

Dunne Co. Schedule of Cost of Goods Sold FIFO 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

Answer 1