Problem 1

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $50 each. Monson uses a perpetual inventory system.

Purchases on December 7 20 units @ $20.00 cost

Purchases on December 14 34 units @ $30.00 cost

Purchases on December 21 30 units @ $36.00 cost

Required:

1. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.

2. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO.

3. Determine the costs assigned to ending inventory when costs are assigned based on the weighted average method.