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 Toal
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