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

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

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
Instructions
1. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the first-in, first-out method

The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.

and the periodic inventory system.
2. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the last-in, first-out method

The method of inventory costing based on the assumption that the cost of merchandise sold is the cost of the most recent purchases.

and the periodic inventory system.
3. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the weighted average cost method

The method of inventory costing in which a weighted average unit cost for each item is computed each time a purchase is made.

and the periodic inventory system. Round the weighted average unit cost to the dollar.
4. Compare the gross profit and June 30, 2016, inventories.

none

X

FIFO

1. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the first-in, first-out method

The method of inventory costing based on the assumption that the costs of merchandise sold should be charged against revenue in the order in which the costs were incurred.

and the periodic inventory system.

Merchandise inventory, June 30, 2016
Cost of merchandise sold

Points:

Feedback

Check My Work

none

X

LIFO

2. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the last-in, first-out method

The method of inventory costing based on the assumption that the cost of merchandise sold is the cost of the most recent purchases.

and the periodic inventory system.

Merchandise inventory, June 30, 2016
Cost of merchandise sold

Points:

Feedback

Check My Work

none

X

Weighted Average Cost Method

3. Determine the inventory on June 30, 2016, and the cost of goods sold for the three-month period, using the weighted average cost method

The method of inventory costing in which a weighted average unit cost for each item is computed each time a purchase is made.

and the periodic inventory system. Round the weighted average unit cost to the dollar.

Merchandise inventory, June 30, 2016
Cost of merchandise sold

Points:

Feedback

Check My Work

none

X

Final Question

4. Compare the gross profit and June 30, 2016, inventories using the following column headings:

Question not attempted.

1

FIFO

LIFO

Weighted Average

2

Sales

3

Cost of merchandise sold

4

Gross profit

5

6

Inventory, June 30, 2016

Solution

1

FIFO

LIFO

Weighted Average

2

Sales

3

Cost of merchandise sold

4

Gross profit

5

6

Inventory, June 30, 2016

Points:

Feedback

Check My Work

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