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 SaleExplanation / 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
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