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 Transaction Number of Units Per Unit Total Apr. 3 Inventory 54 $ 225 $ 12,150 8 Purchase 108 270 29,160 11 Sale 72 750 54,000 30 Sale 45 750 33,750 May 8 Purchase 90 300 27,000 10 Sale 54 750 40,500 19 Sale 27 750 20,250 28 Purchase 90 330 29,700 June 5 Sale 54 790 42,660 16 Sale 72 790 56,880 21 Purchase 162 360 58,320 28 Sale 81 790 63,990

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
	Purchases			Cost of Goods 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 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

1.

LIFO		Cost of Good Available for sale			Cost of Goods Sold			Ending Inventory
		Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount	Quantity	Unit Cost	Amount
Apr-03	Purchase	54	$     225.00	$   12,150.00				54	$      225.00	$12,150.00
Apr-08	Purchase	108	$     270.00	$   29,160.00				54	$      225.00	$12,150.00
								108	$      270.00	$29,160.00
Apr-11	Sales				72	$      270.00	$   19,440.00	54	$      225.00	$12,150.00
								36	$      270.00	$   9,720.00
Apr-30	Sales				36	$      270.00	$     9,720.00
					9	$      225.00	$     2,025.00	45	$      225.00	$10,125.00
May-08	Purchase	90	$     300.00	$   27,000.00				45	$      225.00	$10,125.00
								90	$      300.00	$27,000.00
May-10	Sales				54	$      300.00	$   16,200.00	45	$      225.00	$10,125.00
								36	$      300.00	$10,800.00
May-19	Sales				27	$      300.00	$     8,100.00	45	$      225.00	$10,125.00
								9	$      300.00	$   2,700.00
May-28	Purchase	90	$     330.00	$   29,700.00				45	$      225.00	$10,125.00
								9	$      300.00	$   2,700.00
								90	$      330.00	$29,700.00
Jun-05	Sales				54	$      330.00	$   17,820.00	45	$      225.00	$10,125.00
								9	$      300.00	$   2,700.00
								36	$      330.00	$11,880.00
Jun-16	Sales				36	$      330.00	$   11,880.00	18	$      225.00	$   4,050.00
					9	$      300.00	$     2,700.00
					27	$      225.00	$     6,075.00
Jun-21	Purchase	162	$     360.00	$   58,320.00				18	$      225.00	$   4,050.00
								162	$      360.00	$58,320.00
Jun-28	Sales				81	$      360.00	$   29,160.00	18	$      225.00	$   4,050.00
								81	$      360.00	$29,160.00
	Total			$156,330.00			$123,120.00			$33,210.00

2.

		Sales
		Quantity	Unit Price	Amount
Apr-11	Sales	72	$     750.00	$   54,000.00
Apr-30	Sales	45	$     750.00	$   33,750.00
May-10	Sales	54	$     750.00	$   40,500.00
May-19	Sales	27	$     750.00	$   20,250.00
Jun-05	Sales	54	$     790.00	$   42,660.00
Jun-16	Sales	72	$     790.00	$   56,880.00
Jun-28	Sales	81	$     790.00	$   63,990.00
	Total	405		$312,030.00

Sales	$    312,030.00
Cost of Goods Sold	$    123,120.00
Gross Profit	$    188,910.00

3. Ending Inventory = $33210