Question

FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number of Units Date Transaction Per Unit Total Apr. 3 Inventory $1,200 $30,000 8 Purchase 1,240 93,000 11 Sale 2,000 80,000 60,000 30 Sale May 8 Purchase 2,000 1,260 2,000 2,000 1,260 75,600 100,000 10 Sale 19 Sale 40.000 28 Purchase 100,800 June 5 Sale 2,250 90,000 16 Sale 2.250 56,250 21 Purchase 1,264 44,240 28 Sale 2,250 99,000 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one Illustrated in Exhibit , using the first in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the cost of Merchandise Sold Unit Cost column and in th

Answer 1

Answer is given below

19 FIFO method with Perpetual inventory Purchase Cost of Merchandise sold Inventory Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost April 3 Opening balance 25 $1,200 $30,000 April 8 Purchases 75 $1,240 $93,000 $1,200 $30,000 $1,240 $93,000 April 11 Sale $1,200 $30,000 $1,240 $18,600 $1,240 $30,000 April 30 Sale $1,240 $37,200 $1,240 $93,000 May 8 Purchase 60 $1,260 $75,600 $1,240 $37,200 $1,260 $75,600 May 10 Sale $1,240 $37,200 $1,260 $25,200 $1,260 $50,400 May 19 Sale $1,260 $25,200 20 $1,260 $25,200 May 28 Purchase $1,260 $100,800 $1,260 $25,200 $1,260 $100,800 June 5 Sale $1,260 $25,200 $1,260 $25,200 $1,260 $75,600 June 16 Sale $1,260 $31,500 $1,260 $44,100 June 21 Purchase $1,264 $44,240 $1,260 $44,100 35 $1,264 $44,240 June 28 $1,260 $44,100 $1,264 $11,376 26 $1,264 $32,864 June 30 Balances $310,776 26 $32,864 35 Opening stock Add: Purchase $30,000 $313,640 $343,640 $32,864 $310,776 Less: Closing stock Cost of Goods sold Credit 2 Record Sale Date General Journal Accounts Receivable To Sales (Being sales on account) Debit $525,250 $525,250 Credit Record Cost Date General Journal Debit Cost of Goods sold $310,776 To merchandise inventory (Being Cost of Goods sold) $310,776 Gross profit Sales Less: Cost of Goods sold Gross profit $525,250 $310,776 $214,474 Ending Inventory as on June 30th $32,864 Inventory using Last in First out will be Lower