LIFO perpetual inventory The beginning inventory at Dunne Co. and data on purchases and sales...
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Accounting
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
Numberof Units
Per Unit
Total
Apr. 3
Inventory
72
$600
$43,200
8
Purchase
144
720
103,680
11
Sale
96
2,000
192,000
30
Sale
60
2,000
120,000
May 8
Purchase
120
800
96,000
10
Sale
72
2,000
144,000
19
Sale
36
2,000
72,000
28
Purchase
120
880
105,600
June 5
Sale
72
2,100
151,200
16
Sale
96
2,100
201,600
21
Purchase
216
960
207,360
28
Sale
108
2,100
226,800
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.
2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.
Line Item Description
Amount
Total sales
$
Total cost of goods sold
$
Gross profit
$
3. Determine the ending inventory cost on June 30
Answer & Explanation
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