Question

he 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	72		$375		$27,000
8		Purchase	144		450		64,800
11		Sale	96		1,250		120,000
30		Sale	60		1,250		75,000
May 8		Purchase	120		500		60,000
10		Sale	72		1,250		90,000
19		Sale	36		1,250		45,000
28		Purchase	120		550		66,000
June 5		Sale	72		1,315		94,680
16		Sale	96		1,315		126,240
21		Purchase	216		600		129,600
28		Sale	108		1,315		142,020

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

Ans.1	DUNNE CO.
	Schdule of Cost Of Merchandise Sold
	LIFO Method
	For the Three Months Ended June 30
		Purchase			Cost of Goods Sold			Balance
	Date	Quantity	Unit cost	Total cost	Quantity	Units sold	COGS	Quantity	Unit cost	Total cost
	3-Apr	72	375	27000				72	375	27000
	8-Apr	144	450	64800				72	375	27000
								144	450	64800
	11-Apr				96	450	43200	72	375	27000
								48	450	21600
	30-Apr				48	450	21600
					12	375	4500	60	375	22500
	8-May	120	500	60000				60	375	22500
								120	500	60000
	10-May				72	500	36000	60	375	22500
								48	500	24000
	19-May				36	500	18000	60	375	22500
								12	500	6000
	28-May	120	550	66000				60	375	22500
								12	500	6000
								120	550	66000
	5-Jun				72	550	39600	60	375	22500
								12	500	6000
								48	550	26400
	16-Jun				48	550	26400
					12	500	6000
					36	375	13500	24	375	9000
	21-Jun	216	600	129600				24	375	9000
								216	600	129600
	28-Jun				108	600	64800	24	375	9000
								108	600	64800
	Balance				COGS		273600	End. Inv.		73800
	In Perpetual inventory method of LIFO, the units that purchase last are sold first one.