Question

LIFO Perpetual Inventory The 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 78 $525 $40,950 8 Purchase 156 630 98,280 11 Sale 105 1,750 183,750 30 Sale 66 1,750 115,500 May 8 Purchase 130 700 91,000 10 Sale 78 1,750 136,500 19 Sale 39 1,750 68,250 28 Purchase 130 770 100,100 June 5 Sale 78 1,840 143,520 16 Sale 104 1,840 191,360 21 Purchase 234 840 196,560 28 Sale 117 1,840 215,280 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. Dunne Co. Schedule of Cost of Goods Sold LIFO 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, the total cost of goods sold, and the gross profit from sales for the period. Total sales $ Total cost of goods sold $ Gross profit from sales $ 3. Determine the ending inventory cost as of June 30. $

Answer 1

Answer 1.

Answer 2.

Total Sales = $183,750 + $115,500 + $136,500 + $68,250 + $143,520 + $191,360 + $215,280
Total Sales = $1,054,160

Total Cost of Goods Sold = $416,010

Gross Profit = Total Sales - Total Cost of Goods Sold
Gross Profit = $1,054,160 - $416,010
Gross Profit = $638,150

Answer 3.

Ending Inventory = $110,880