Question

In: Accounting

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period...

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 $300 $23,400
8 Purchase 156 360 56,160
11 Sale 104 1,000 104,000
30 Sale 65 1,000 65,000
May 8 Purchase 130 400 52,000
10 Sale 78 1,000 78,000
19 Sale 39 1,000 39,000
28 Purchase 130 440 57,200
June 5 Sale 78 1,050 81,900
16 Sale 104 1,050 109,200
21 Purchase 234 480 112,320
28 Sale 117 1,050 122,850

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 fill in the blank 1 $fill in the blank 2 $fill in the blank 3
Apr. 8 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9
fill in the blank 10 fill in the blank 11 fill in the blank 12
Apr. 11 fill in the blank 13 $fill in the blank 14 $fill in the blank 15 fill in the blank 16 fill in the blank 17 fill in the blank 18
fill in the blank 19 fill in the blank 20 fill in the blank 21
Apr. 30 fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25 fill in the blank 26 fill in the blank 27
May 8 fill in the blank 28 fill in the blank 29 fill in the blank 30 fill in the blank 31 fill in the blank 32 fill in the blank 33
fill in the blank 34 fill in the blank 35 fill in the blank 36
May 10 fill in the blank 37 fill in the blank 38 fill in the blank 39 fill in the blank 40 fill in the blank 41 fill in the blank 42
fill in the blank 43 fill in the blank 44 fill in the blank 45
May 19 fill in the blank 46 fill in the blank 47 fill in the blank 48 fill in the blank 49 fill in the blank 50 fill in the blank 51
May 28 fill in the blank 52 fill in the blank 53 fill in the blank 54 fill in the blank 55 fill in the blank 56 fill in the blank 57
fill in the blank 58 fill in the blank 59 fill in the blank 60
June 5 fill in the blank 61 fill in the blank 62 fill in the blank 63 fill in the blank 64 fill in the blank 65 fill in the blank 66
June 16 fill in the blank 67 fill in the blank 68 fill in the blank 69 fill in the blank 70 fill in the blank 71 fill in the blank 72
June 21 fill in the blank 73 fill in the blank 74 fill in the blank 75 fill in the blank 76 fill in the blank 77 fill in the blank 78
fill in the blank 79 fill in the blank 80 fill in the blank 81
June 28 fill in the blank 82 fill in the blank 83 fill in the blank 84 fill in the blank 85 fill in the blank 86 fill in the blank 87
fill in the blank 88 fill in the blank 89 fill in the blank 90
June 30 Balances $fill in the blank 91 $fill in the blank 92

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 fill in the blank 94
fill in the blank 96
Record cost fill in the blank 98
fill in the blank 100

3. Determine the gross profit from sales for the period.
$fill in the blank 101

4. Determine the ending inventory cost as of June 30.
$fill in the blank 102

Solutions

Expert Solution

Under FIFO perpetual inventory, the cost of goods sold is determined from the cost of goods purchased first. Therefore, the ending inventory costs will be from latest purchases.


1.

2.


Total sales for the period = $599,950
Total cost of goods sold for the period = $232,440

Journal entries:


3.
Gross profit from sales for the period = $367,510

4.
Ending inventory cost as of June 30 = $68,640


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