Problem 3. Inventory Cost Flow Assumption: FIFO, LIFO, Average Cost; Perpetual Method.

Inventory information for UMPI Corporation discloses the following information for the month of June.

June 1 : Balance 450 units @ $11

June 11 : Purchased 950 units @ $13

June 20 : Purchased 525 units @ $14

June 15 : Sold 200 units @ $24

June 15 : Sold 575 units @ $25

June 27 : Sold 324 units @ $27

Instructions

3.7 Prepare the adjusting journal entries to record cost of goods sold for the month of June for the perpetual inventory method.

3.4)
Perpetual and LIFO:
Date	Purchases			Cost of	Goods Sold		Ending	Inventory
	Units	costs $	Total $	Units	costs $	Total $	Units	costs $	Total $
Jun-01							450	11	4950
Jun-11	950	13	12350				450	11	4950
							950	13	12350
Jun-15				200	13	2600	450	11	4950
							750	13	9750
Jun-15				575	13	7475	450	11	4950
							175	13	2275
Jun-20	525	14	7350				450	11	4950
							175	13	2275
							525	14	7350
Jun-27				324	14	4536	450	11	4950
							175	13	2275
							201	14	2814
Total				1099		14611	826		10039

Step 2/3

Perpetual and FIFO valuation :

3.5)
Perpetual and FIFO:
Date	Purchases			Cost of	Goods Sold		Ending	Inventory
	Units	costs $	Total $	Units	costs $	Total $	Units	costs $	Total $
Jun-01							450	11	4950
Jun-11	950	13	12350				450	11	4950
							950	13	12350
Jun-15				200	11	2200	250	11	2750
							950	13	12350
Jun-15				250	11	2750	625	13	8125
				325	13	4225
Jun-20	525	14	7350				625	13	8125
							525	14	7350
Jun-27				324	13	4212	301	13	3913
							525	14	7350
Total				1099		13387	826		11263

Step 3/3

Perpetual and Average Cost valuation :

3.6)
Perpetual and Average Cost:
Date	Purchases			Cost of	Goods Sold		Ending	Inventory
	Units	costs $	Total $	Units	costs $	Total $	Units	costs $	Total $
Jun-01							450	11	4950
Jun-11	950	13	12350				1400	12.36	17300
Jun-15				200	12.36	2472	1200	12.36	14829
Jun-15				575	12.36	7107	625	12.36	7723
Jun-20	525	14	7350				1150	13.11	15073
Jun-27				324	13.11	4248	826	13.11	10827
Total				1099		13827	826		10827