LIFO Perpetual Inventory The beginning inventory for Dunne C

LIFO Perpetual Inventory

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

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.

Date		Transaction	Number of Units	Per Unit	Total
Apr. 3		Inventory	25		$1,200		$30,000
8		Purchase	75		1,240		93,000
11		Sale	40		2,000		80,000
30		Sale	30		2,000		60,000
May 8		Purchase	60		1,260		75,600
10		Sale	50		2,000		100,000
19		Sale	20		2,000		40,000
28		Purchase	80		1,260		100,800
June 5		Sale	40		2,250		90,000
16		Sale	25		2,250		56,250
21		Purchase	35		1,264		44,240
28		Sale	44		2,250		99,000

Solution

COMPUTATION OF INVENTORY UNDER LIFO METHOD DATE PURCHASES COST OF GOODS SOLD INVENTORY UNITS UNIT RATE($) COST($) UNITS UNIT RATE ($) COST ($) UNITS UNIT RATE ($) COST ($) 3 apr 25 1200 30000 25 1200 30000 8 apr 75 1240 93000 25 1200 30000 75 1240 93000 11 apr 40 1240 49600 25 1200 30000 35 1240 43400 30 apr 30 1240 37200 25 1200 30000 5 1240 6200 8 may 60 1260 75600 25 1200 30000 5 1240 6200 60 1260 75600 10 may 50 1260 63000 25 1200 30000 5 1240 6200 10 1260 12600 19 may 10 1260 12600 5 1240 6200 5 1200 6000 20 1200 24000 28 may 80 1260 100800 20 1200 24000 80 1260 100800 5 jun 40 1260 50400 20 1200 24000 40 1260 50400 16 jun 25 1260 31500 20 1200 24000 15 1260 18900 21 jun 35 1264 44240 20 1200 24000 15 1260 18900 35 1264 44240 28 jun 35 1264 44240 20 1200 24000 9 1260 11340 6 1260 7560 TOTAL 343640 312080 31560