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LIFO Perpetual Inventory The beginning inventory of merchandise at Dunne Co. and

ID: 2400012 • Letter: L

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: Number of Units 72 144 96 60 120 72 36 120 72 96 216 108 Date Transaction Per Unit Total $300 $21,600 51,840 96,000 60,000 48,000 72,000 36,000 52,800 75,600 100,800 103,680 113,400 Apr. 3 Inventory 8 Purchase 360 1,000 1,000 400 1,000 1,000 440 1,050 1,050 480 1,050 11 Sale 30 Sale May 8 Purchase 10 Sale 19 Sale 28 Purchase June 5 Sale 16 Sale 21 Purchase 28 Sale

Explanation / Answer

Answers

Purchases

Cost of merchandise Sold

Inventory

Date

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Apr-03

72

$ 300.00

$    21,600.00

Apr-08

144

$ 360.00

$    51,840.00

72

$ 300.00

$    21,600.00

144

$ 360.00

$    51,840.00

Apr-11

96

$ 360.00

$    34,560.00

72

$ 300.00

$    21,600.00

48

$ 360.00

$    17,280.00

Apr-30

48

$ 360.00

$    17,280.00

60

$ 300.00

$    18,000.00

12

$ 300.00

$      3,600.00

May-08

120

$ 400.00

$    48,000.00

60

$ 300.00

$    18,000.00

120

$ 400.00

$    48,000.00

May-10

72

$ 400.00

$    28,800.00

60

$ 300.00

$    18,000.00

48

$ 400.00

$    19,200.00

May-19

36

$ 400.00

$    14,400.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

May-28

120

$ 440.00

$    52,800.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

120

$ 440.00

$    52,800.00

Jun-05

72

$ 440.00

$    31,680.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

48

$ 440.00

$    21,120.00

Jun-16

48

$ 440.00

$    21,120.00

24

$ 300.00

$      7,200.00

12

$ 400.00

$      4,800.00

36

$ 300.00

$    10,800.00

Jun-21

216

$ 480.00

$ 103,680.00

24

$ 300.00

$      7,200.00

216

$ 480.00

$ 103,680.00

Jun-28

108

$ 480.00

$    51,840.00

24

$ 300.00

$      7,200.00

108

$ 480.00

$    51,840.00

Jun-30

Balances

$ 256,320.00

$ 218,880.00

$    59,040.00

-----Total Sales----

Sales

Units

Rate

Amount

Apr sale

156

$ 1,000.00

$     156,000.00

May Sale

108

$ 1,000.00

$     108,000.00

June Sale

276

$ 1,050.00

$     289,800.00

Total

540

$     553,800.00

Total Sales = $ 553,800

Total Cost of Merchadise Sold = $ 218,880

Gross profit on sale = 553,800 – 218,880 = $ 334,920

Ending Inventory on June 30, as per Req 1 = 132 units of $ 59,040

Purchases

Cost of merchandise Sold

Inventory

Date

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Quantity

Unit Cost

Total Cost

Apr-03

72

$ 300.00

$    21,600.00

Apr-08

144

$ 360.00

$    51,840.00

72

$ 300.00

$    21,600.00

144

$ 360.00

$    51,840.00

Apr-11

96

$ 360.00

$    34,560.00

72

$ 300.00

$    21,600.00

48

$ 360.00

$    17,280.00

Apr-30

48

$ 360.00

$    17,280.00

60

$ 300.00

$    18,000.00

12

$ 300.00

$      3,600.00

May-08

120

$ 400.00

$    48,000.00

60

$ 300.00

$    18,000.00

120

$ 400.00

$    48,000.00

May-10

72

$ 400.00

$    28,800.00

60

$ 300.00

$    18,000.00

48

$ 400.00

$    19,200.00

May-19

36

$ 400.00

$    14,400.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

May-28

120

$ 440.00

$    52,800.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

120

$ 440.00

$    52,800.00

Jun-05

72

$ 440.00

$    31,680.00

60

$ 300.00

$    18,000.00

12

$ 400.00

$      4,800.00

48

$ 440.00

$    21,120.00

Jun-16

48

$ 440.00

$    21,120.00

24

$ 300.00

$      7,200.00

12

$ 400.00

$      4,800.00

36

$ 300.00

$    10,800.00

Jun-21

216

$ 480.00

$ 103,680.00

24

$ 300.00

$      7,200.00

216

$ 480.00

$ 103,680.00

Jun-28

108

$ 480.00

$    51,840.00

24

$ 300.00

$      7,200.00

108

$ 480.00

$    51,840.00

Jun-30

Balances

$ 256,320.00

$ 218,880.00

$    59,040.00