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	90		$300		$27,000
8		Purchase	180		360		64,800
11		Sale	120		1,000		120,000
30		Sale	75		1,000		75,000
May 8		Purchase	150		400		60,000
10		Sale	90		1,000		90,000
19		Sale	45		1,000		45,000
28		Purchase	150		440		66,000
June 5		Sale	90		1,050		94,500
16		Sale	120		1,050		126,000
21		Purchase	270		480		129,600
28		Sale	135		1,050		141,750

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.

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
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 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
Record cost

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

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

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Answer 1

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD
	RECIEPTS	COST OF GOODS SOLD	BALANCE
DATE	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $	UNITS	RATE	AMOUNT $
03-Apr							90	300	27000
08-Apr	180	360	64800				90	300	27000
							180	360	64800
11-Apr				90	300	27000
				30	360	10800	150	360	54000
30-Apr				75	360	27000	75	360	27000
08-May	150	400	60000				75	360	27000
							150	400	60000
10-May				75	360	27000
				15	400	6000	135	400	54000
19-May				45	400	18000	90	400	36000
28-May	150	440	66000				90	400	36000
							150	440	66000
05-Jun				90	400	36000	150	440	66000
16-Jun				120	440	52800	30	440	13200
21-Jun	270	480	129600				30	440	13200
							270	480	129600
28-Jun				30	440	13200
				105	480	50400	165	480	79200
TOTAL	750		320400	675		268200	165		79200
Sales revenue (120000+75000+90000+45000+94500+126000+141750):	692250
Req 2.
Journal entries
S.no.	Accounts title and explanations		Debit $	Credit $
a.	Accounts receivable			692250
	Sales revenue				692250
	(for sales made on account)
b.	Cost of goods sold			268200
	Merchandise inventory			268200
	(for cost of goods sold)
Req 3.
Gross Profit:
Sales revenue		692250
Less: Cost of goods sold	268200
Gross Profit:		424050						ekkarill92 Next > < Previous Related Solutions FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 90 $450 $40,500 8 Purchase 180 540 97,200 11 Sale 120 1,500 180,000 30 Sale 75 1,500 112,500 May 8 Purchase 150 600 90,000 10 Sale 90 1,500 135,000 19 Sale 45 1,500 67,500 28 Purchase 150 660 99,000 June 5 Sale 90 1,575... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 60 $225 $13,500 8 Purchase 120 270 32,400 11 Sale 80 750 60,000 30 Sale 50 750 37,500 May 8 Purchase 100 300 30,000 10 Sale 60 750 45,000 19 Sale 30 750 22,500 28 Purchase 100 330 33,000 June 5 Sale 60 790... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 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... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 48 $225 $10,800 8 Purchase 96 270 25,920 11 Sale 64 750 48,000 30 Sale 40 750 30,000 May 8 Purchase 80 300 24,000 10 Sale 48 750 36,000 19 Sale 24 750 18,000 28 Purchase 80 330 26,400 June 5 Sale 48 790... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 66 $300 $19,800 8 Purchase 132 360 47,520 11 Sale 88 1,000 88,000 30 Sale 55 1,000 55,000 May 8 Purchase 110 400 44,000 10 Sale 66 1,000 66,000 19 Sale 33 1,000 33,000 28 Purchase 110 440 48,400 June 5 Sale 66 1,050... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 72 $450 $32,400 8 Purchase 144 540 77,760 11 Sale 96 1,500 144,000 30 Sale 60 1,500 90,000 May 8 Purchase 120 600 72,000 10 Sale 72 1,500 108,000 19 Sale 36 1,500 54,000 28 Purchase 120 660 79,200 June 5 Sale 72 1,575... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 42 $525 $22,050 8 Purchase 84 630 52,920 11 Sale 56 1,750 98,000 30 Sale 35 1,750 61,250 May 8 Purchase 70 700 49,000 10 Sale 42 1,750 73,500 19 Sale 21 1,750 36,750 28 Purchase 70 770 53,900 June 5 Sale 42 1,840... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 48 $525 $25,200 8 Purchase 96 630 60,480 11 Sale 64 1,750 112,000 30 Sale 40 1,750 70,000 May 8 Purchase 80 700 56,000 10 Sale 48 1,750 84,000 19 Sale 24 1,750 42,000 28 Purchase 80 770 61,600 June 5 Sale 48 1,840... FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for... 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 78 $450 $35,100 8 Purchase 156 540 84,240 11 Sale 104 1,500 156,000 30 Sale 65 1,500 97,500 May 8 Purchase 130 600 78,000 10 Sale 78 1,500 117,000 19 Sale 39 1,500 58,500 28 Purchase 130 660 85,800 June 5 Sale 78 1,575... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions 8. Three moles of ideal monatomic gas at 400 K are compressed from 1 atm to... explain the dynamic modeling of three dof robotic arm with details and examples. QDM Question 4 (25 marks): In the planning of the monthly production for the next four... Why is 1 example of my code failing? def current_player_score(score_one: int, score_two: int,current_player: str) -> int:... What is contribution margin? How does it differ from an operating leverage? Discuss, with an example,... Exercise 3.21 DISCOUNTED PAYBACK Your company is considering a high-risk project that could yield strong revenues... Python! Create a program that does the following: Reads a number from the user. Calls a... ADVERTISEMENT About @ 2020 WizEdu