Question

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Date TransactionNumber
of UnitsPer UnitTotal

Apr. 3Inventory66$ 225$ 14,850

8Purchase13227035,640

11Sale8875066,000

30Sale5575041,250

May 8Purchase11030033,000

10Sale6675049,500

19Sale3375024,750

28Purchase11033036,300

June 5Sale6679052,140

16Sale8879069,520

21Purchase19836071,280

28Sale9979078,210

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.

Dunne Co.
Schedule of Cost of Goods Sold
LIFO Method
For the Three Months Ended June 30

PurchasesCost of Goods SoldInventory

DateQuantityUnit CostTotal CostQuantityUnit CostTotal CostQuantityUnit CostTotal 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 30Balances$ $

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

Total sales$

Total cost of goods sold$

Gross profit from sales$

3. Determine the ending inventory cost on June 30.
$

Answer 1

Answer is given below

Date April 3 April 8 April 11 April 30 May 8 May 10 Schedule of Cost of Goods sold (LIFO method) For 3 months ended June 30 Purchase Cost of Goods sold Inventory on Hand Unit Unit Total Unit Total Quantity Quantity Cost Quantity Cost Cost Cost Cost Cost Opening balance 66 $225 $14,850 Purchase 132 $270 $35,640 $225 $14,850 $270 $35,640 Sale 88 $270 $23,760 $225 $14,850 $270 $11,880 Sale $270 $11,880 $225 $2,475 $225 $12,375 Purchase 110 $300 $33,000 $225 $12,375 $300 $33,000 Sale $300 $19,800 $225 $12,375 $300 $13,200 $300 $9,900 $225 $12,375 $300 $3,300 Purchase 110 1 $330 $36,300 $225 $12,375 $300 $3,300 $330 $36,300 Sale 66 $330 $21,780 $225 $12,375 $300 $3,300 $330 $14,520 Sale $330 $14,520 11 $300 $3,300 33 $225 $7,425 22 $225 $4,950 Purchase 198 198 $360 $71,280 $4,950 $360 $71,280 Sale 99 $360 $35,640 22 $225 $4,950 99 $360 $35,640 5 501 $176,220 495 $150,480 121 $40,590 May 19 Sale May 28 June 5 June 16 June 21 $225 198 June 28 Totals 1 2 Total Sales Cost of goods sold Gross profit $381,370 $150,480 $230,890 Ending inventory June 30 3 $40,590