PR7-1B FIFO perpetual inventory The beginning inventory of merchandise at Dunne

Question

PR7-1B FIFO perpetual inventory The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30, 2014, are as follows: OBJ.2, 3 Number of Units 25 75 Per Unit Date Transaction Total Apr. 3 Inventory $1,200 $ 30,000 8 Purchase 11 Sale 30 Sale 1,240 2.00060000 93,000 80,000 60,000 75,600 May 8 Purchase 60 50 20 80 40 25 35 1,260 10 Sale 19 Sale 28 Purchase 2,000 100,000 200040,000 2,000 1,260 100800 2,250 2,250 1,264 2,250 90,000 56,250 44,240 99,000 June 5 Sale 16 Sale 21 Purchase 28 Sale Instructions 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. 2. Determine the total sales and the total cost of merchandise sold for the period. Jour- nalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account. 3. Determine the gross profit from sales for the period. 4. Determine the ending inventory cost on June 30, 2014.

Explanation / Answer

1.

2.

Total Sales :

Total Cost of Merchandise Sold = 310,776

3.

Gross Profit = Sales + Closing inventory - Purchases - Opening Inventory

= 525,250 + 32,864 - 313,640 - 30,000

= 214,474

4. Ending Inventory Cost = 32,864

Purchases Cost of Merchandise Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Apr.3 25 1200 30,000 8 75 1240 93000 25 1200 30,000 75 1240 93,000 11 25 1200 30,000 15 1240 18,600 60 1240 74,400 30 30 1240 37,200 30 1240 37,200 May.8 60 1260 75600 30 1240 37,200 60 1260 75,600 10 30 1240 37,200 20 1260 25,200 40 1260 50,400 19 20 1260 25,200 20 1260 25,200 28 80 1260 100800 20 1260 25,200 80 1260 100,800 June .5 20 1260 25,200 20 1260 25,200 60 1260 75,600 16 25 1260 31,500 35 1260 44,100 21 35 1264 44240 35 1260 44,100 35 1264 44,240 28 35 1260 44,100 9 1264 11,376 26 1264 32,864 30 Balance 313,640 310,776 32,864

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.