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 $32,400 77,760 8 Purchase $450 540 1,500 1,500 11 Sale 144,000 30 Sale 90,000 May 8 Purchase 600 72,000 10 Sale 19 Sale 36 . 1,500 1,500 660 1,575 108,000 54,000 79,200 28 Purchase June 5 Sale 113,400 1.575 16 21 Sale Purchase 720 151,200 155,520 170,100 28 Sale 108 1,575

Answer 1

Dunne Co. Schedule of Cost of Good Sold LIFO Method Foe the three month ended June 30 Cost of Good Sold Units unit cost Purchase Units unit cost Total Total Units Total April, 3 April, 8 Inventory unit cost $450 $450 $540 144 $540 $77,760 $32,400 $32,400 $77,760 $110,160 $32,400 $25,920 $58,320 $27,000 April, 11 $51,840 $450 $540 120 April, 30 $540 $450 60 $450 $25,920 $5,400 $83,160 $0 $0 May 8 120 $600 $72,000 $450 $600 60 1201 180 60 48 May 10 $600 $43,200 $450 $600 May 19 $21,600 $450 $600 $27,000 $72,000 $99,000 $27,000 $28,800 $55,800 $27,000 $7,200 $34,200 $27,000 $7,200 $79,200 $113,400 May 28 660 $79,200 60 $450 $600 $660 120 192

June, 5 $660 $47,520 $450 $600 $660 $27,000 $7,200 $31,680 $65,880 $10,800 June, 16 $450 $660 $600 $450 $31,680 $7,200 $16,200 $55,080 96 June, 21 216 $720 $155,52 $155,520 $450 $720 $10,800 $155,520 $166,320 $10,800 $77,760 $88,560 June, 28 108 $720 $77,760 24 $450 $720 108 132 Total 600 $384,480 540 $380,160 Ans 2 Total Sales Total Cost of Good sold Gross Profit $830,700 ($380,160) $450,540 Sales Value Date Units April, 11 April, 30 May 10 May 19 June, 5 June, 16 June, 28 price $1,500 $1,500 $1,500 $1,500 $1,575 $1,575 $1,575 540 Amount $144,000 $90,000 $108,000 $54,000 $113,400 $151,200 $170,100 $830,700 Ans 3 Ending Inventory Cost $88,560