FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and
ID: 2400011 • Letter: F
Question
FIFO 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: Number Per Unit $600 720 2,000 2,000 800 2,000 2,000 880 Total $50,400 120,960 224,000 140,000 112,000 168,000 84,000 123,200 176,400 235,200 241,920 264,600 Date Transaction of Units 84 168 112 70 140 84 Apr. 3 Inventory 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sale 19 Sale 28 Purchase 140 84 112 252 126 2,100 2,100 960 2,100 June 5 Sale 16 Sale 21 Purchase 28 SaleExplanation / Answer
Dunne Co
Schedule of Cost of Merchandise Sold
FIFO method
For the three month ended June 30th 2016.
Purchases
Cost of Merchandise Sold
Inventory
Date
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
3-Apr
84
$ 600.00
$ 50,400.00
84
$ 600.00
$ 50,400.00
8-Apr
168
$ 720.00
$ 120,960.00
84
$ 600.00
$ 50,400.00
168
$ 720.00
$ 120,960.00
11-Apr
84
$ 600.00
$ 50,400.00
140
$ 720.00
$ 100,800.00
28
$ 720.00
$ 20,160.00
30-Apr
70
$ 720.00
$ 50,400.00
70
$ 720.00
$ 50,400.00
8-May
140
$ 800.00
$ 112,000.00
70
$ 720.00
$ 50,400.00
140
$ 800.00
$ 112,000.00
10-May
70
$ 720.00
$ 50,400.00
126
$ 800.00
$ 100,800.00
14
$ 800.00
$ 11,200.00
19-May
42
$ 800.00
$ 33,600.00
84
$ 800.00
$ 67,200.00
28-May
140
$ 880.00
$ 123,200.00
84
$ 800.00
$ 67,200.00
140
$ 880.00
$ 123,200.00
5-Jun
84
$ 800.00
$ 67,200.00
140
$ 880.00
$ 123,200.00
16-Jun
112
$ 880.00
$ 98,560.00
28
$ 880.00
$ 24,640.00
21-Jun
252
$ 960.00
$ 241,920.00
28
$ 880.00
$ 24,640.00
252
$ 960.00
$ 241,920.00
28-Jun
28
$ 880.00
$ 24,640.00
154
$ 960.00
$ 147,840.00
98
$ 960.00
$ 94,080.00
Total
784
$ 648,480.00
630
500640
154
$ 147,840.00
2
Gross profit calculation
Sales
$ 1,292,200.00
Less: Cost of goods sold
$ 500,640.00
Gross profit
$ 791,560.00
3
Ending Inventory cost as of June 30
$ 147,840.00
4
If Last in first out is used the Inventory cost would be lower as products purchased earlier would be in inventory and prices are rising.
Dunne Co
Schedule of Cost of Merchandise Sold
FIFO method
For the three month ended June 30th 2016.
Purchases
Cost of Merchandise Sold
Inventory
Date
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
Quantity
Unit Cost
Total Cost
3-Apr
84
$ 600.00
$ 50,400.00
84
$ 600.00
$ 50,400.00
8-Apr
168
$ 720.00
$ 120,960.00
84
$ 600.00
$ 50,400.00
168
$ 720.00
$ 120,960.00
11-Apr
84
$ 600.00
$ 50,400.00
140
$ 720.00
$ 100,800.00
28
$ 720.00
$ 20,160.00
30-Apr
70
$ 720.00
$ 50,400.00
70
$ 720.00
$ 50,400.00
8-May
140
$ 800.00
$ 112,000.00
70
$ 720.00
$ 50,400.00
140
$ 800.00
$ 112,000.00
10-May
70
$ 720.00
$ 50,400.00
126
$ 800.00
$ 100,800.00
14
$ 800.00
$ 11,200.00
19-May
42
$ 800.00
$ 33,600.00
84
$ 800.00
$ 67,200.00
28-May
140
$ 880.00
$ 123,200.00
84
$ 800.00
$ 67,200.00
140
$ 880.00
$ 123,200.00
5-Jun
84
$ 800.00
$ 67,200.00
140
$ 880.00
$ 123,200.00
16-Jun
112
$ 880.00
$ 98,560.00
28
$ 880.00
$ 24,640.00
21-Jun
252
$ 960.00
$ 241,920.00
28
$ 880.00
$ 24,640.00
252
$ 960.00
$ 241,920.00
28-Jun
28
$ 880.00
$ 24,640.00
154
$ 960.00
$ 147,840.00
98
$ 960.00
$ 94,080.00
Total
784
$ 648,480.00
630
500640
154
$ 147,840.00
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