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2 CengageNOWV2] Online : keAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator; ilrn/ta FIFO Perpetual Inventory The beginning inventory at Dunne Co. and dat assignment a on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Pe Unit Total Apr. 3 Inventory 8 Purchase 42 84 56 35 70 42 21 $450 540 1,500 1,500 600 1,500 1,500 660 1,575 1,575 720 1,575 $18,900 45,360 84,000 52,500 42,000 63,000 31,500 46,200 66,150 88,200 90,720 99,225 30 Sale May 8 Purchase 10 Sale 19 Sale 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale 63 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cos

Solution

STATEMENT SHOWING INVENTORY RECORD UNDER PERPETUAL FIFO METHOD RECIEPTS COST OF GOODS SOLD BALANCE DATE UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ UNITS RATE AMOUNT $ 3-Apr 42 450 18900 8-Apr 84 540 45360 42 450 18900 84 540 45360 11-Apr 42 450 18900 14 540 7560 70 540 37800 30-Apr 35 540 18900 35 540 18900 8-May 70 600 42000 35 540 18900 70 600 42000 10-May 35 540 18900 7 600 4200 63 600 37800 19-May 21 600 12600 42 600 25200 28-May 70 660 46200 42 600 25200 70 660 46200 5-Jun 42 600 25200 70 660 46200 16-Jun 56 660 36960 14 660 9240 21-Jun 126 720 90720 14 660 9240 126 720 90720 28-Jun 14 660 9240 49 720 35280 77 720 55440 TOTAL 350 224280 315 187740 77 55440 Total sales: 484575 (84000+52500+63000+31500+66150+88200+99225) Journal entry for sale: Accounts receivable Account Dr. 484575      Ssales revennue 484575 Journal entry for COGS: Cost of Goods sold Account Dr. 187740      Inventory Account 187740 Req 3: Gross profit: Sales 484575 Less: COGS 187740 Gross profit: 296835 Req 4: Ending inventory on June30: $ 55440 Req 5: Inventory as per LIFO shall be LOWER