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

ID: 2543614 • Letter: L

Question

LIFO Perpetual Inventory The beginning inventory of merchandise t Dunne Co. and data on purchases and sales for three-month period endng June 30 res follows: Number of Units DotcTransaction Per Unit Total Apr. 3 nventory 72 300 21,600 51,840 95 1,000 56,0c0 60 1,000 60,000 48,000 72 1,000 72,000 35 1,D0036,000 440 52,800 2 1,050 75,600 95 1,050 1CO,80O 480 103,680 109 1,050113,40O 8 Purchase 11 Sale 30 Sale May 8 Purchase 10 Sal 120 400 28 Purchasc 120 June S Sale 16 Sale 21 Purchase 28 Salo 216 1. Record the inventory purchases, and cost of merchandise sold data in a perpetual i va tory record similar to the ona i ustrated in Exhibit 4 Merchandisc Sold Unit Cost calumn and LOWER unit cost first in the Inventory Unit Cost column. sin the last in, first-out method. Under F if units ara in inventory at t o different costs enter the units it the HIGHER unit cost first in the cost of Schedule of Cost LIFO Method Cost of Merchandise Sold Unit Cost Inventory Unit Cost Dat Quantity Unit Cost Total Cost Quantity Total Cost Quantity Total Cost 30021,600 30021,600 51,840 72 Apr. 8 144 360 51,840 144 360 Apr. 30

Explanation / Answer

1.

Perpetual inventory system: LIFO

72 units * $300 = $21600

144 units * $360 = $51840

72 units * $300 = $21600

48 units * $360 = $17280

48 units * $360 = $17280

12 units * $300 = $3600

60 units * $300 = $18000

120 units * $400 = $48000

60 units * $300 = $18000

48 units * $400 = $19200

60 units * $300 = $18000

12 units * $400 = $4800

60 units * $300 = $18000

12 units * $400 = $4800

120 units * $440 = $52800

60 units * $300 = $18000

12 units * $400 = $4800

48 units * $440 = $21120

48 units * $440 = $21120

12 units * $400 = 4800

36 units * $300 = $10800

24 units * $300 = $7200

216 units * $480 = $103680

24 units * $300 = $7200

108 units * $480 = $51840

2.

Sales $553800

Cost of goods sold ($218880)

Gross margin $334920

3.

Ending inventory on june 30 is $59040.

Date Cost of goods available or sale Cost of goods sold Ending inventory Apr 3 72 units * $300 = $21600 72 units * $300 = $21600 8 144 units * $360 = $51840

72 units * $300 = $21600

144 units * $360 = $51840

11 96 units * $360 = $34560

72 units * $300 = $21600

48 units * $360 = $17280

30

48 units * $360 = $17280

12 units * $300 = $3600

60 units * $300 = $18000 May 8 120 units * $400 = $48000

60 units * $300 = $18000

120 units * $400 = $48000

10 72 units * $400 = $28800

60 units * $300 = $18000

48 units * $400 = $19200

19 36 units * $400 = $14400

60 units * $300 = $18000

12 units * $400 = $4800

28 120 units * $440 = $52800

60 units * $300 = $18000

12 units * $400 = $4800

120 units * $440 = $52800

June 5 72 units * $440 = $31680

60 units * $300 = $18000

12 units * $400 = $4800

48 units * $440 = $21120

16

48 units * $440 = $21120

12 units * $400 = 4800

36 units * $300 = $10800

24 units * $300 = $7200 21 216 units * $480 = $103680

24 units * $300 = $7200

216 units * $480 = $103680

28 108 units * $480 = $51840

24 units * $300 = $7200

108 units * $480 = $51840

Cost of goods sold = $218880 Ending inventory = $59040