Question

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. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.

Inventory, June 30	$
Cost of goods sold	$

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

Inventory, June 30	$
Cost of goods sold	$

3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.

Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar.

Inventory, June 30	$
Cost of goods sold	$

4. Compare the gross profit and June 30 inventories using the following column headings. Enter all amounts as positive numbers.

	FIFO	LIFO	Weighted Average
Sales	$	$	$
Cost of goods sold
Gross profit	$	$	$
Inventory, June 30	$	$	$

Answer 1

• All working forms part of the answer
• Working for all the methods:

FIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	25	$ 1,200.00	$       30,000.00	25	$   1,200.00	$        30,000.00	0	$ 1,200.00	$                   -
Purchases:
08-Apr	75	$ 1,240.00	$       93,000.00	75	$   1,240.00	$        93,000.00	0	$ 1,240.00	$                   -
08-May	60	$ 1,260.00	$       75,600.00	60	$   1,260.00	$        75,600.00	0	$ 1,260.00	$                   -
28-May	80	$ 1,260.00	$     100,800.00	80	$   1,260.00	$      100,800.00	0	$ 1,260.00	$                   -
21-Jun	35	$ 1,264.00	$       44,240.00	9	$   1,264.00	$        11,376.00	26	$ 1,264.00	$   32,864.00
TOTAL	275		$     343,640.00	249		$      310,776.00	26		$   32,864.00
LIFO	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	25	$ 1,200.00	$       30,000.00	0	$   1,200.00	$                        -	25	$ 1,200.00	$   30,000.00
Purchases:	0	$               -	$                      -
08-Apr	75	$ 1,240.00	$       93,000.00	74	$   1,240.00	$        91,760.00	1	$ 1,240.00	$      1,240.00
08-May	60	$ 1,260.00	$       75,600.00	60	$   1,260.00	$        75,600.00	0	$ 1,260.00	$                   -
28-May	80	$ 1,260.00	$     100,800.00	80	$   1,260.00	$      100,800.00	0	$ 1,260.00	$                   -
21-Jun	35	$ 1,264.00	$       44,240.00	35	$   1,264.00	$        44,240.00	0	$ 1,264.00	$                  -
TOTAL	275		$     343,640.00	249		$      312,400.00	26		$   31,240.00
Average Method	Cost of Goods available for sale			Cost of Goods Sold			Ending Inventory
	Units	Cost/unit	COG for sale	Units sold	Cost/unit	COGS	Units	Cost/unit	Ending inventory
Beginning Inventory	25	$ 1,200.00	$       30,000.00
Purchases:	0	$               -	$                      -
08-Apr	75	$ 1,240.00	$       93,000.00
08-May	60	$ 1,260.00	$       75,600.00
28-May	80	$ 1,260.00	$    100,800.00
21-Jun	35	$ 1,264.00	$       44,240.00
TOTAL	275	$ 1,250	$     343,640.00	249	$   1,250	$      311,250.00	26	$ 1,250	$   32,500.00

• Requirement 1, 2 and 3

---Based on above workings:

	Requirement 1	Requirement 2	Requirement 3
Inventory, June 30 [26 units]	$          32,864	$                  31,240	$          32,500
Cost of Goods Sold [249 units]	$        310,776	$                343,640	$        311,250

• Requirement 4

	FIFO	LIFO	Weighted Average Method
Sales Revenue	$ 525,250.00	$          525,250.00	$ 525,250.00
(-) Cost of Goods Sold (as calculated above)	$ 310,776.00	$          312,400.00	$ 311,250.00
Gross Margin	$ 214,474.00	$          212,850.00	$ 214,000.00
Inventory, June 30	$    32,864.00	$            31,240.00	$    32,500.00