Question

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	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

Required:

1. Record the inventory, purchases, and cost of goods 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 Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.
Dune LU. Schedule of Cost of Goods Sold LIFO Method For the Three Months Ended June 30 Cost of Goods Sold Quantity Unit Cost Total Cost Purchases Unit Cost Date Quantity Total Cost Quantity 25 Inventory Unit Cost 1,200 Total Cost 30,000 Apr. 3 $ $ Apr. 8 75 ~ $ 1,240 $ 93,000 Apr. 11 40 $ Apr. 30 30 May 8 May 10

Answer 1

Correct Answer:

Total sales	$ 525,250.00
Total cost of goods sold	$ 312,080.00
Gross profit	$ 213,170.00

Ending inventory

26 units

$    31,560.00

Working:

Perpetual LIFO
Date	Goods Purchased			Cost of Goods Sold			Inventory Balance
	# of Units	Cost Per Unit	Cost of Goods Available for sale	# of Units Sold	Cost per Unit	Cost of Goods Sold	# of Units	Cost per Unit	Inventory Balance
03-Apr							25	$    1,200.00	$    30,000.00
08-Apr	75	$         1,240.00	$       93,000.00				75	$    1,240.00	$    93,000.00
							25	$    1,200.00	$    30,000.00
11-Apr				40	$       1,240.00	$    49,600.00	35	$    1,240.00	$    43,400.00
							25	$    1,200.00	$    30,000.00
30-Apr				30	$       1,240.00	$    37,200.00	5	$    1,240.00	$       6,200.00
							25	$    1,200.00	$    30,000.00
08-May	60	$         1,260.00	$       75,600.00				60	$    1,260.00	$    75,600.00
							5	1240	$       6,200.00
							25	$    1,200.00	$    30,000.00
10-May				50	$       1,260.00	$    63,000.00	10	$    1,260.00	$    12,600.00
							5	$    1,240.00	$       6,200.00
							25	$    1,200.00	$    30,000.00
19-May				10	$       1,260.00	$    12,600.00	20	$    1,200.00	$    24,000.00
				5	$       1,240.00	$      6,200.00
				5	$       1,200.00	$      6,000.00
28-May	80	$         1,260.00	$    100,800.00				80	$    1,260.00	$ 100,800.00
							20	$    1,200.00	$    24,000.00
05-Jun				40	$       1,260.00	$    50,400.00	40	$    1,260.00	$    50,400.00
							20	$    1,200.00	$    24,000.00
16-Jun				25	$       1,260.00	$    31,500.00	15	$    1,260.00	$    18,900.00
							20	$    1,200.00	$    24,000.00
21-Jun	35	$         1,264.00	$       44,240.00				35	$    1,264.00	$    44,240.00
							15	$    1,260.00	$    18,900.00
							20	$    1,200.00	$    24,000.00
28-Jun				35	$       1,264.00	$    44,240.00	6	$    1,260.00	$       7,560.00
				9	$       1,260.00	$    11,340.00	20	$    1,200.00	$    24,000.00
Totals	250		$    313,640.00	249		$ 312,080.00	26		$    31,560.00

End of answer.

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