90.2K

Verified Solution

Link Copied!

FIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and data on surchases and sales for a three month period ending lune 30 are as follows: Number Date Transaction of Units Per Unit Total Apc 3 trventory 48 5500 $14,400 Purchase 360 34,560 11 Sale 64 1,000 64.000 30 Sale 40 1.000 49.000 May & Purchase B0 400 12,000 10 Sale 48 1.000 48.000 19 Sale 24 1,000 24,000 28 Purchase 80 440 35,200 June 5 Sale 1,050 50,400 16 Sale 64 1,050 67,200 21 Purchase 144 480 69,120 28 Sale 72 1.050 75.600 Required: 1. Record the inventory, purchaves, and cost of merchandise sold data in a perpetual inventory recorder to the one who using the first first-octethod. Under Firo, units are inventory at two different cou, enter the units with the LOWER unit cost test in the cost of Merchandise Sold Unit Cost column and in the ventry Unit Cost column WEER UI SIUN MER Dunne Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30 Cost of Merchandise Sold Purchases Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr Apr. 8 - C Apr. 11 ODION Apc 30 May 8 - TONIO May 10 May 19 a May 28 June 5 June 16 NOMEN May 28 unas June 16 une 21 Sune 2 use 30 wances 2. Determine the total sales and the total cost of merchandise sold for the period. Sumate the entries in the sales and cost of merchandise accounts. Assume that were on account Record sale Recerdon 3. Determine the gross profit from sales for the period 4. Determine the ending inventory cost as of June 30. 5. Based upon the preceding data, would you expect the inventory using the last tout method to be Ngher or not

Answer & Explanation Solved by verified expert

See Answer