The beginning inventory for Dunne Co. and data on purchases and sales for a thre

Question

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

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 5, using the weighted average cost method.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost on June 30.
$

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

Schedule of Cost of Merchandise Sold             purchases               cost og f Merchandise sold Date Qty unit cost total Qty unit cost total Qty unit cost total 3-Apr 25 1,200 30,000 8-Apr 75 1,240 93,000 75 1,240 93,000 25 1,200 30,000 11-Apr 40 1,240 49,600 35 1,240 43,400 25 1,200 30,000 30-Apr 30 1,240 37,200 5 1,240 6,200 25 1,200 30,000 8-May 60 1,260 75,600 60 1,260 75,600 5 1,240 6,200 25 1,200 30,000 10-May 50 1,260 63,000 10 1,260 12,600 5 1,240 6,200 25 1,200 30,000 19-May 10 1,260 12,600 5 1,240 6,200 5 1,200 6,000 20 1,200 24,000 28-May 80 1,260 100,800 80 1,260 100,800 20 1,200 24,000 5-Jun 40 1,260 50,400 40 1,260 50,400 20 1,200 24,000 16-Jun 25 1,260 31,500 15 1,260 18,900 20 1,200 24,000 21-Jun 35 1,264 44,240 35 1,264 44,240 15 1,260 18,900 20 1,200 24,000 28-Jun 35 1,264 44,240 6 1,260 7,560 9 1,260 11,340 20 1,200 24,000 total 313,640 249 312080 31,560 2) total sales $525,250 total cost of merchandise -312,080 Gross profit $213,170 3) ending inventory 26 units $31,560

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