Periodic Inventory by Three Methods The beginning inventory for Dunne Co. and da

Question

Periodic Inventory by Three Methods

The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the first-in, first-out method and the periodic inventory system. Round the weighted average unit cost to the nearest cent.

2. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the last-in, first-out method and the periodic inventory system.

3. Determine the inventory on June 30 and the cost of goods sold for the three-month period, using the weighted average cost method and the periodic inventory system.

Note: Round the weighted average unit cost to the nearest dollar and final answers to the nearest dollar.

4. Compare the gross profit and June 30 inventories using the following column headings. Enter all amounts as positive numbers.

Date Transaction Number
of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 75 1,240 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 99,000

Explanation / Answer

STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 25 1200 30000 25 1200 30000 Purchasse 8-Apr 75 1240 93000 75 1240 93000 8-May 60 1260 75600 60 1260 75600 28-May 80 1260 100800 80 1260 100800 21-Jun 35 1264 44240 9 1264 11376 26 1264 32864 TOTAL 275 343640 249 310776 26 32864 Inventory June30 32864 Cost of Goods sold 310776 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC LIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 25 1200 30000 25 1200 30000 Purchasse 8-Apr 75 1240 93000 74 1240 91760 1 1240 1240 8-May 60 1260 75600 60 1260 75600 28-May 80 1260 100800 80 1260 100800 21-Jun 35 1264 44240 35 1264 44240 TOTAL 275 343640 249 312400 26 31240 Inventory On June30 31240 Cost of Goods sold 312400 STATEMENT SHOWING INVENTORY RECORD UNDER PERIODIC WEIGHTED AVERAGE METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ Beg. Balance 25 1200 30000 Purchasse 8-Apr 75 1240 93000 8-May 60 1260 75600 28-May 80 1260 100800 21-Jun 35 1264 44240 TOTAL 275 1249.6 343640 249 1249.6 311150 26 1249.6 32490 Inventory On June 30 32490 Cost of Goods sold 311150 FIFO LIFO Average Sales 525250 525250 525250 Cost of Goods sold 310776 312400 311150 Gross Profit 214474 212850 214100 Inventory on June30 32864 31240 32490

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