LIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and

Question

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:

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Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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.

Date Transaction Number of Units Per Unit Total Apr. 3 Inventory 48 $375 $18,000 8 Purchase 96 450 43,200 11 Sale 64 1250 80,000 30 Sale 40 1250 50,000 May 8 Purchase 80 500 40,000 10 Sale 48 1250 60,000 19 Sale 24 1250 30,000 28 Purchase 80 550 44,000 Jun 5 sale 48 1315 63,120 16 sale 64 1315 84,160

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Purchase 144 600 86,400 28 Sale 72 1315 94,680

Explanation / Answer

LIFO Date Purchases Cost of Goods Sold Balance Unit Cost Total Unit Cost Total Unit Cost Total 3-Apr                   48           375.00     18,000.00 8-Apr                   96           450.00      43,200.00                   48           375.00     18,000.00                   96           450.00     43,200.00                 144     61,200.00 11-Apr                   64           450.00      28,800.00                   48           375.00     18,000.00                   32           450.00     14,400.00                   80     32,400.00 30-Apr                   32           450.00      14,400.00                   40           375.00     15,000.00                     8           375.00        3,000.00                   40      17,400.00 8-May                   80           500.00      40,000.00                   40           375.00     15,000.00                   80           500.00     40,000.00                 120     55,000.00 10-May                   48           500.00      24,000.00                   40           375.00     15,000.00                   32           500.00     16,000.00                   72     31,000.00 19-May                   24           500.00      12,000.00                   40           375.00     15,000.00                     8           500.00       4,000.00                   48     19,000.00 28-May                   80           550.00      44,000.00                   40           375.00     15,000.00                     8           500.00       4,000.00                   80           550.00     44,000.00                 128     63,000.00 5-Jun                   48           550.00      26,400.00                   40           375.00     15,000.00                     8           500.00       4,000.00                   32           550.00     17,600.00                   80     36,600.00 16-Jun                   32           550.00      17,600.00                   16           375.00       6,000.00                     8           500.00        4,000.00                   24           375.00        9,000.00                   64      30,600.00 21-Jun                 144           600.00      86,400.00                   16           375.00       6,000.00                 144           600.00     86,400.00                 160     92,400.00 28-Jun                   72           600.00      43,200.00                   16           375.00       6,000.00                   72           600.00     43,200.00                   88     49,200.00 Total                 400    213,600.00                 360    182,400.00

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