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

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 Date Transaction Total Apr. 3 Inventory $1,200 30,000 8 Purchase 11 Sale 30 Sale 75 40 30 60 1,240 60,000 75,600 100,000 40,000 100,800 90,000 56,250 44,240 99,000 May 8 Purchase 1,260 2,000 10 Sale 19 Sale 28 Purchase 20 80 40 1,260 2,250 2,250 1,264 2,250 June 5 Sale 16 Sale 21 Purchase 28 Sale 35 FIFO LIFO Weighted Average Cost of merchandise sold Gross profit Inventory, June 30