FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:NumberDateTransactionof UnitsPer UnitTotalApr. 3Inventory72$300$21,6008Purchase14436051,84011Sale961,00096,00030Sale601,00060,000May 8Purchase12040048,00010Sale721,00072,00019Sale361,00036,00028Purchase12044052,800June 5Sale721,05075,60016Sale961,050100,80021Purchase216480103,68028Sale1081,050113,400 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 LOWERGoods Sold Unit Cost column and in the Inventory Unit Cost column.Dunne Co.Schedule of Cost of Goods SoldFIFO MethodFor the Three Months Ended June 30PurchasesCost of Goods SoldInventoryDateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal CostApr. 372 V300 V21,600 VApr. 8144 V360 V51,840Apr. 1196 X1,000 x96,000 xApr. 3060 V1,000 X60,000 xMay 8120400 V48,000 vMay 1072 x1,000 x72,000 xMay 1936 x1,000 X36,000 xMay 28120440 V52,800June 572 X1,050 x75,600 XJune 1696 X1,050 x100,800 xJune 21216480 V103,680 VJune 28108 X1,050 x113,400 xJune 30 Balances2. 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. If an amount box does not require an entry, leave it blank.Record saleAccounts ReceivableVSales vRecord cost Cost of Goods SoldInventoryv3. Determine the gross profit from sales for the period.4. Determine the ending inventory cost as of June 30.5. Based upon the preceding data, would you expect the ending inventory using the last-in, first-out method to be higher or lower?Lower

Name: FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data
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Description: FIFO Perpetual InventoryThe beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:NumberDateTransactionof UnitsPer UnitTotalApr. 3Inventory72$300$21,6008Purchase14436051,84011Sale961,

Using FIFO method, the units that were purchased first are to be sold first. The ending inventory…

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FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 72 $300 $21,600 8 Purchase 144 360 51,840 11 Sale 96 1,000 96,000 30 Sale 60 1,000 60,000 May 8 Purchase 120 400 48,000 10 Sale 72 1,000 72,000 19 Sale 36 1,000 36,000 28 Purchase 120 440 52,800 June 5 Sale 72 1,050 75,600 16 Sale 96 1,050 100,800 21 Purchase 216 480 103,680

FIFO Perpetual Inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 72 $300 $21,600 8 Purchase 144 360 51,840 11 Sale 96 1,000 96,000 30 Sale 60 1,000 60,000 May 8 Purchase 120 400 48,000 10 Sale 72 1,000 72,000 19 Sale 36 1,000 36,000 28 Purchase 120 440 52,800 June 5 Sale 72 1,050 75,600 16 Sale 96 1,050 100,800 21 Purchase 216 480 103,680

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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Assume that the business in Exercise 7-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4.
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FIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Instructions 1. 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. 2. 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. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30. 5. 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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