Question

LIFO 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:

Date		Transaction	Number of Units		Per Unit		Total
Apr. 3		Inventory	78		$450		$35,100
8		Purchase	156		540		84,240
11		Sale	105		1,500		157,500
30		Sale	66		1,500		99,000
May 8		Purchase	130		600		78,000
10		Sale	78		1,500		117,000
19		Sale	39		1,500		58,500
28		Purchase	130		660		85,800
June 5		Sale	78		1,575		122,850
16		Sale	104		1,575		163,800
21		Purchase	234		720		168,480
28		Sale	117		1,575		184,275

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.
$

Answer 1

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-03 450 35100 78 Apr-08 156 540 84240 78 450 540 35100 84240 Apr-11 105 540 56700 78 450 540 35100 27540 Apr-30 450 28350 540 450 27540 6750 May-08 130 600 78000 450 600 28350 78000 May-10 600 46800 450 600 28350 31200 May-19 600 23400 450 600 28350 7800 May-28 130 660 85800 450 600 660 28350 7800 85800 Jun-05 78 660 51480 13 450 600 660 28350 7800 34320 Jun-16 13 39 660 600 450 450 34320 7800 17550 450 10800 Jun-21 234 720 168480 450 720 10800 168480 Jun-28 720 84240 450 720 10800 84240 Jun-30 356580141 95040

Date Quantity Apr-11 Apr-30 May-10 May-19 Jun-05 Jun-16 Jun-28 Total Sale Price Total 1500 1500 1500 1500 1575 1575 117 1575 587 157500 990001 117000 58500 122850 163800 184275 902925 104

902925 Total Sale Total Cost of Merchandise Sold 356580 Gross Profit 546345 Ending Cost of Inventory Units Cost Pe Total 24450 10800 117 720 84240 1411 95040