Question

1. The beginning inventory for 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	25		$1,200		$30,000
   8		Purchase	75		1,240		93,000
   11		Sale	40		2,000		80,000
   30		Sale	30		2,000		60,000
   May 8		Purchase	60		1,260		75,600
   10		Sale	50		2,000		100,000
   19		Sale	20		2,000		40,000
   28		Purchase	80		1,260		100,800
   June 5		Sale	40		2,250		90,000
   16		Sale	25		2,250		56,250
   21		Purchase	35		1,264		44,240
   28		Sale	44		2,250		99,000

   Required:

   1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

   Dunne Co. Schedule of Cost of Merchandise Sold LIFO Method For the three-months ended June 30
   	Purchases			Cost of Merchandise 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 merchandise sold, and the gross profit from sales for the period.

   Total sales	$
   Total cost of merchandise sold
   Gross profit	$

   3. Determine the ending inventory cost on June 30.

• 
  

Answer 1

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

Dunne Co. Schedule of Cost of Merchandise Sold LIFO Method For the three-months ended June 30
	Purchases			Cost of Merchandise Sold			Inventory
Date	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost	Quantity	Unit Cost	Total Cost
Apr. 3							25	$1200	$30000
Apr. 8	75	$1240	$93000				25	1200	30000
							75	1240	93000
Apr. 11				40	$1240	$49600	25	1200	30000
							35	1240	43400
Apr. 30				30	1240	37200	25	1200	30000
							5	1240	6200
May 8	60	1260	75600				25	1200	30000
							5	1240	6200
							60	1260	75600
May 10				50	1260	63000	25	1200	30000
							5	1240	6200
							10	1260	12600
May 19				10	1260	12600
				5	1240	6200
				5	1200	6000	20	1200	24000
May 28	80	1260	100800				20	1200	24000
							80	1260	100800
June 5				40	1260	50400	20	1200	24000
							40	1260	50400
June 16				25	1260	31500	20	1200	24000
							15	1260	18900
June 21	35	1264	44240				20	1200	24000
							15	1260	18900
							35	1264	44240
June 28				35	1264	44240	20	1200	24000
				9	1260	11340	6	1260	7560
June 30	Balances					$312080			$31560

Sales = 525250

Cost of goods sold = 312080

Gross profit = 213170

c) Ending inventory = 31560