The beginning inventory for Rhodes Co. and data on purchases and sales for a three-month period are shown in Problem 7-1B.

Data From Problem 7-1B.

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:

Instructions
1. Determine the inventory on June 30 and the cost of merchandise sold for the three month period, using the first-in, first-out method and the periodic inventory system.

2. Determine the inventory on June 30 and the cost of merchandise sold for the three month period, using the last-in, first-out method and the periodic inventory system.

3. Determine the inventory on June 30 and the cost of merchandise sold for the three month period, using the weighted average cost method and the periodic inventory system. Round the weighted average unit cost to the dollar.

4. Compare the gross profit and June 30 inventories using the following column headings.

Transcribed Image Text:

Number of Units Per Unit Total Transaction Inventory Purchase Date 40 $ 670 $ 26,800 Apr. 3 690 82,800 8 120 60 1,120 67,200 11 Sale 50 1,120 56,000 30 Sale 100 700 70,000 May 8 Purchase 80 1,120 89,600 10 Sale 19 Sale 30 1,120 33,600 28 Purchase 120 707 84,840 June 5 Sale 60 1,260 75,600 16 Sale 40 1,260 50,400 21 Purchase 180 712 128,160 28 Sale 190 1,260 239,400