PR 6-1BFIFO perpetual inventoryObj. 2, 3The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:Date TransactionNumber of UnitsPer UnitTotalApr. 3 Inventory25$1,200$ 30,0008 Purchase751,24093,00011 Sale402,00080,00030 Sale302,00060,000May 8 Purchase601,26075,60010 Sale502,000100,00019 Sale202,00040,00028 Purchase801,260100,800June 5 Sale402,25090,00016 Sale252,25056,25021 Purchase351,26444,24028 Sale442,25099,000 InstructionsRecord the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.Determine the gross profit from sales for the period.AnswerCheck Figure: $214,474Determine the ending inventory cost on June 30.Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

Date Purchases Inventory Sales Inventory Balance Per unit($) Cost ($) Apr 3 25 1200 30000…

Answered: FIFO perpetual inventory Obj. 2, 3The…

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 6.2BPR: LIFO perpetual inventory The beginning inventory for Dunne Co. and data on purchases and sales for a...

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FIFO perpetual inventory

Obj. 2, 3The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:

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

Instructions

Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method.
Determine the total sales and the total cost of goods sold for the period. Journalize the entries in the sales and cost of goods sold accounts. Assume that all sales were on account.
Determine the gross profit from sales for the period.

Answer
Check Figure: $214,474
Determine the ending inventory cost on June 30.
Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?

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