The beginning inventory of merchandise at Dunne Co. and data on purchases and sa

Question

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:

Required:

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. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

2. Determine the total sales and the total cost of merchandise sold for the period. Journalize the entries in the sales and cost of merchandise sold accounts. Assume that all sales were on account.

Date Transaction Number
of Units Per Unit Total Apr. 3 Inventory 72 $225 $16,200 8 Purchase 144 270 38,880 11 Sale 96 750 72,000 30 Sale 60 750 45,000 May 8 Purchase 120 300 36,000 10 Sale 72 750 54,000 19 Sale 36 750 27,000 28 Purchase 120 330 39,600 June 5 Sale 72 790 56,880 16 Sale 96 790 75,840 21 Purchase 216 360 77,760 28 Sale 108 790 85,320

Explanation / Answer

Solution 1:

Solution 2:

Total cost of merchandise sold = $160,920

Computation of ending inventory COGS under FIFO Date Beginning Inventory Purchase Cost of Goods Sold Ending Inventory Qty Rate Amount Qty Rate Amount Qty Rate Amount Qty Rate Amount 3-Apr 72 $225.00 $16,200.00 0 $0.00 $0.00 0 $0.00 $0.00 72 $225.00 $16,200.00 8-Apr 72 $225.00 $16,200.00 144 $270.00 $38,880.00 0 $0.00 $0.00 72 $225.00 $16,200.00 144 $270.00 $38,880.00 11-Apr 72 $225.00 $16,200.00 0 $0.00 $0.00 72 $225.00 $16,200.00 120 $270.00 $32,400.00 144 $270.00 $38,880.00 24 $270.00 $6,480.00 30-Apr 120 $270.00 $32,400.00 0 $0.00 $0.00 60 $270.00 $16,200.00 60 $270.00 $16,200.00 8-May 60 $270.00 $16,200.00 120 $300.00 $36,000.00 0 $0.00 $0.00 60 $270.00 $16,200.00 120 $300.00 $36,000.00 10-May 60 $270.00 $16,200.00 0 $0.00 $0.00 60 $270.00 $16,200.00 108 $300.00 $32,400.00 120 $300.00 $36,000.00 12 $300.00 $3,600.00 19-May 108 $300.00 $32,400.00 0 $0.00 $0.00 36 $300.00 $10,800.00 72 $300.00 $21,600.00 28-May 72 $300.00 $21,600.00 120 $330.00 $39,600.00 0 $0.00 $0.00 72 $300.00 $21,600.00 120 $330.00 $39,600.00 5-Jun 72 $300.00 $21,600.00 0 $0.00 $0.00 72 $300.00 $21,600.00 120 $330.00 $39,600.00 120 $330.00 $39,600.00 16-Jun 120 $330.00 $39,600.00 0 $0.00 $0.00 96 $330.00 $31,680.00 24 $330.00 $7,920.00 21-Jun 24 $330.00 $7,920.00 216 $360.00 $77,760.00 0 $0.00 $0.00 24 $330.00 $7,920.00 216 $360.00 $77,760.00 28-Jun 24 $330.00 $7,920.00 0 $0.00 $0.00 24 $330.00 $7,920.00 132 $360.00 $47,520.00 216 $360.00 $77,760.00 84 $360.00 $30,240.00 Total $160,920.00 $47,520.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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