Reference no: EM132468460
LIFO Perpetual Inventory
The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:
Date TransactionNumber of UnitsPer UnitTotalApr.
Point 1: 3 Inventory66 $450 $29,700
Point 2: 8 Purchase132 540 71,280 11 Sale88 1,500 132,000
Point 3: 30 Sale55 1,500 82,500
Point 4: May 8 Purchase110 600 66,000
Point 5: 10 Sale66 1,500 99,000
Point 1: 19 Sale33 1,500 49,500
Point 6: 28 Purchase110 660 72,600
Point 7: June 5 Sale66 1,575 103,950
Point 8: 16 Sale88 1,575 138,600
Point 9: 21 Purchase198 720 142,560
Point 10: 28 Sale99 1,575 155,925
Required:
Question 1: Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated 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 Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
Dunne Co.
Schedule of Cost of Merchandise Sold
LIFO Method
For the three-months ended June 30 PurchasesCost of Merchandise SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostApr. 3 $Apr. 8$ Apr. 11 $Apr. 30 May 8 May 10 May 19 May 28 June 5 June 16 June 21 June 28 June 30Balances $ $
Question 2: Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
Question 3: Determine the ending inventory cost on June 30.