Question

LIFO Perpetual Inventory The beginning inventory of merchandise 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,    $225,    $18,900

8    Purchase 168, 270, 45,360

11 Sale 113,    750, 84,750

30 Sale 71,    750,    53,250

May 8    Purchase 140,    300,    42,000

10 Sale    84,    750,    63,000

19 Sale    42, 750, 31,500

28    Purchase    140,    330, 46,200

June 5    Sale 84,    790, 66,360

16 Sale 112,    790, 88,480

21 Purchase 252,    360, 90,720

28    Sale    126,    790, 99,540

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

LIFO
		PURCHASES			COST OF GOODS SOLD			INVENTORY BALANCE
DATE	PARTICULAS	NO. OF UNITS	COST PER UNIT	PURCHASES	NO. OF UNITS SOLD	COST PER UNIT	COGS	NO. OF UNITS	COST PER UNIT	INVENTORY
03-Apr	inventory							84	225	18900
08-Apr	purchase	168	270	45360				84	225	18900
								168	270	45360
11-Apr	sales				113	270	30510	84	225	18900
								55	270	14850
30-Apr	sales				55	270	14850
					16	225	3600	68	225	15300
08-May	PURCHASE	140	300	42000				68	225	15300
								140	300	42000
10-May	sale				84	300	25200	68	225	15300
								56	300	16800
19-May	sale				42	300	12600	68	225	15300
								14	300	4200
28-May	purchase	140	330	46200				68	225	15300
								14	300	4200
								140	330	46200
05-Jun	sale				84	330	27720	68	225	15300
								14	300	4200
								56	330	18480
16-Jun	sale				56	330	18480
					14	300	4200
					42	225	9450	26	225	5850
21-Jun	purchase	252	360	90720				26	225	5850
								252	360	90720
28-Jun	sale				126	360	45360	26	225	5850
								126	360	45360
30-Jun	ending inventory							152		51210
	total	700		224280	632		191970	152		51210

2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.

sales	486880
less; COGS	191970
gross profit	294910

sales
113	750	84750
71	750	53250
84	750	63000
84	790	66360
42	750	31500
112	790	88480
126	790	99540
632		486880

3. Determine the ending inventory cost on June 30. $

51210$

HOPE THIS WAS HELPFUL. A LOT OF EFFORT HAS BEEN PUT INTO THIS TO MAKE IT EASILY UNDERSTANDABLE. INCASE OF DOUBTS, GET BACK TO ME. DO CONSIDER GIVING THIS A THUMBS UP.