FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and
ID: 2543684 • 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 Total $5,400 12,960 24,000 15,000 12,000 18,000 9,000 13,200 18,900 25,200 25,920 28,350 Date Transaction of Units Per Unit 36 72 48 30 60 36 18 60 36 48 108 $150 180 500 500 200 500 500 220 525 525 240 525 Apr. 3 Inventory 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sale 19 Sale 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale Required 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.Explanation / Answer
purchases cost of merchandise sold inventory Date Qty unit cost total Qty unit cost total Qty unit cost Qty cost cost 3-Apr 36 150 5400 8-Apr 72 180 12,960 36 150 5,400 72 180 12,960 11-Apr 36 150 5,400 12 180 2160 60 180 10800 30-Apr 30 180 5400 30 180 5,400 8-May 60 200 12,000 30 180 5,400 60 200 12,000 10-May 30 180 5,400 6 200 1200 54 200 10800 19-May 18 200 3600 36 200 7200 28-May 60 220 13,200 36 200 7200 60 220 13,200 5-Jun 36 200 7200 60 220 13,200 16-Jun 48 220 10560 12 220 2640 21-Jun 108 240 25920 12 220 2640 108 240 25920 28-Jun 12 220 2640 42 240 10080 66 240 15840 30-Jun Balances 53640 15,840 Sale 138450 Account receivable 138,450 Cost of goods sol 53,640 Merchandise inventory 53,640 Gross profit (sales - COGS) 84,810 Ending inventory 15,840 ending inventory under LIFO will be higher
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