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.