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		$225		$17,550
8		Purchase	156		270		42,120
11		Sale	105		750		78,750
30		Sale	66		750		49,500
May 8		Purchase	130		300		39,000
10		Sale	78		750		58,500
19		Sale	39		750		29,250
28		Purchase	130		330		42,900
June 5		Sale	78		790		61,620
16		Sale	104		790		82,160
21		Purchase	234		360		84,240
28		Sale	117		790		92,430

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 = $78,750 + $49,500 + $58,500 + $29,250 + $61,620 + $82,160 + $92,430
Total Sales = $452,210

Total Cost of Goods Sold = $178,290

Gross Profit from Sales = Total Sales - Total Cost of Goods Sold
Gross Profit from Sales = $452,210 - $178,290
Gross Profit from Sales = $273,920

Answer 3.

Ending Inventory = $47,520