Reference no: EM131882376

Obj. 2, 3The 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	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. 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 first-in, first-out method.

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.

3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost on June 30.

5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Attachment:- Problem.xlsx