LIFO Perpetual Inventory The beginning inventory
LIFO Perpetual Inventory
The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total | ||||
| Apr. 3 | Inventory | 54 | 525 | $28350 | ||||
| 8 | Purchase | 108 | 630 | 68040 | ||||
| 11 | Sale | 72 | 1750 | 126000 | ||||
| 30 | Sale | 45 | 1750 | 78750 | ||||
| May 8 | Purchase | 90 | 700 | 63000 | ||||
| 10 | Sale | 54 | 1750 | 94500 | ||||
| 19 | Sale | 27 | 1750 | 47250 | ||||
| 28 | Purchase | 90 | 770 | 69300 | ||||
| June 5 | Sale | 54 | 1840 | 99360 | ||||
| 16 | Sale | 72 | 1840 | 132480 | ||||
| 21 | Purchase | 162 | 840 | 136080 | ||||
| 28 | Sale | 81 | 1840 | 149040 |
Required:
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
| Dunne Co. Schedule of Cost of Merchandise Sold LIFO Method For the three-months ended June 30 |
|||||||||
| Purchases | Cost of Merchandise Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Apr. 3 | $ | $ | |||||||
| Apr. 8 | $ | $ | |||||||
| Apr. 11 | $ | $ | |||||||
| Apr. 30 | |||||||||
| May 8 | |||||||||
| May 10 | |||||||||
| May 19 | |||||||||
| May 28 | |||||||||
| June 5 | |||||||||
| June 16 | |||||||||
| June 21 | |||||||||
| June 28 | |||||||||
| June 30 | Balances | $ | $ |
2. Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
| Total sales | $ |
| Total cost of merchandise sold | |
| Gross profit | $ |
3. Determine the ending inventory cost on June 30.
$
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
