The beginning inventory of merchandise at Dunne Co. and data on purchases and sales for a three-month period ending June 30,2016, are as follow:
|
Date
|
Transactions
|
Number of Units
|
Per Unit
|
Total
|
|
Apr. 3
|
Inventory
|
25
|
1,200
|
30,000
|
|
8
|
Purchase
|
75
|
1,240
|
93,000
|
|
11
|
Sale
|
40
|
2,000
|
80,000
|
|
30
|
Sale
|
30
|
2,000
|
60,000
|
|
May 8
|
Purchase
|
60
|
1,260
|
75,600
|
|
10
|
Sale
|
50
|
2,000
|
100,000
|
|
19
|
Sale
|
20
|
2,000
|
40,000
|
|
28
|
Purchase
|
80
|
1,260
|
100,800
|
|
June 5
|
Sale
|
40
|
2,250
|
90,000
|
|
16
|
Sale
|
25
|
2,250
|
56,250
|
|
21
|
Purchase
|
35
|
1,264
|
44,240
|
|
28
|
Sale
|
44
|
2,250
|
99,000
|
FIFO Instructions:
1.) Record the inventory, purchases, and cost of perchandise sold data in a perpetual inventory record using the first-in, first-out method
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.
3.) Determine the gross profit from sales for the period.
4.) Determine the ending inventory cost on June 30, 2016.
5.) Based upon the preceding data, would you expect the inventory using the last-in, first-out method to be higher or lower?
6.) Use the FIFO Excel File
LIFO Instructions
1.) Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory using the last-in, first-out method.
2.) Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3.) Determine the ending inventory cost on June 30, 2016.
4.) Use the LIFO Excel file
Weighted Average Instructions
1.) Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record using the weighted average cost method.
2.) Determine the total sales, the total cost of merchandise sold, and the gross profit from sales for the period.
3.) Determine the ending inventory cost on June 30, 2016.
4.) Use the WEIGHTED AVERAGE Excel file