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The beginning inventory of merchandise at dunne co

30/04/2021 Client: muhammad11 Deadline: 2 Day

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 follows:

The beginning inventory of merchandise at Dunne Co. and data
Instructions
1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, 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?
Exhibit 4: Elements of Internal Control

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