FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 are as follows:
| Date | Transaction | Number of Units |
Per Unit | Total | ||||
| Apr. 3 | Inventory | 36 | $150 | $5,400 | ||||
| 8 | Purchase | 72 | 180 | 12,960 | ||||
| 11 | Sale | 48 | 500 | 24,000 | ||||
| 30 | Sale | 30 | 500 | 15,000 | ||||
| May 8 | Purchase | 60 | 200 | 12,000 | ||||
| 10 | Sale | 36 | 500 | 18,000 | ||||
| 19 | Sale | 18 | 500 | 9,000 | ||||
| 28 | Purchase | 60 | 220 | 13,200 | ||||
| June 5 | Sale | 36 | 525 | 18,900 | ||||
| 16 | Sale | 48 | 525 | 25,200 | ||||
| 21 | Purchase | 108 | 240 | 25,920 | ||||
| 28 | Sale | 54 | 525 | 28,350 |
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.
| Dunne Co. Schedule of Cost of Merchandise Sold FIFO Method For the three-months ended June 30 |
|||||||||
| Purchases | Cost of Merchandise Sold | Inventory | |||||||
| Date | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost | Quantity | Unit Cost | Total Cost |
| Apr. 3 | fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | ||||||
| Apr. 8 | fill in the blank 4 | $fill in the blank 5 | $fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | |||
| fill in the blank 10 | fill in the blank 11 | fill in the blank 12 | |||||||
| Apr. 11 | fill in the blank 13 | $fill in the blank 14 | $fill in the blank 15 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | |||
| fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | |||||||
| Apr. 30 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 | fill in the blank 26 | fill in the blank 27 | |||
| May 8 | fill in the blank 28 | fill in the blank 29 | fill in the blank 30 | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | |||
| fill in the blank 34 | fill in the blank 35 | fill in the blank 36 | |||||||
| May 10 | fill in the blank 37 | fill in the blank 38 | fill in the blank 39 | fill in the blank 40 | fill in the blank 41 | fill in the blank 42 | |||
| fill in the blank 43 | fill in the blank 44 | fill in the blank 45 | |||||||
| May 19 | fill in the blank 46 | fill in the blank 47 | fill in the blank 48 | fill in the blank 49 | fill in the blank 50 | fill in the blank 51 | |||
| May 28 | fill in the blank 52 | fill in the blank 53 | fill in the blank 54 | fill in the blank 55 | fill in the blank 56 | fill in the blank 57 | |||
| fill in the blank 58 | fill in the blank 59 | fill in the blank 60 | |||||||
| June 5 | fill in the blank 61 | fill in the blank 62 | fill in the blank 63 | fill in the blank 64 | fill in the blank 65 | fill in the blank 66 | |||
| June 16 | fill in the blank 67 | fill in the blank 68 | fill in the blank 69 | fill in the blank 70 | fill in the blank 71 | fill in the blank 72 | |||
| June 21 | fill in the blank 73 | fill in the blank 74 | fill in the blank 75 | fill in the blank 76 | fill in the blank 77 | fill in the blank 78 | |||
| fill in the blank 79 | fill in the blank 80 | fill in the blank 81 | |||||||
| June 28 | fill in the blank 82 | fill in the blank 83 | fill in the blank 84 | fill in the blank 85 | fill in the blank 86 | fill in the blank 87 | |||
| fill in the blank 88 | fill in the blank 89 | fill in the blank 90 | |||||||
| June 30 | Balances | $fill in the blank 91 | $fill in the blank 92 |
2. Determine the total sales and the total cost of merchandise sold for the period.
| Record sale | fill in the blank 94 | ||
| fill in the blank 96 | |||
| Record cost | fill in the blank 98 | ||
| fill in the blank 100 |
3. Determine the gross profit from sales for the period.
$fill in the blank 101
4. Determine the ending inventory cost as of June 30.
$fill in the blank 102
5. Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?
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