Question
Use the following information for the Quick Study below. Trey Monson starts a merchandising business on December 1 and enters into the following three inventory
Use the following information for the Quick Study below.
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $45 each.
Purchases on December 7 | 15 units @ $18.00 cost |
Purchases on December 14 | 29 units @ $27.00 cost |
Purchases on December 21 | 25 units @ $32.00 cost |
|
QS 5-10 Perpetual: Assigning costs with FIFO LO P1
Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.
Perpetual FIFO: | |||||||||||||||
Goods Purchased | Cost of Goods Sold | Inventory Balance | |||||||||||||
Date | # of Units | Cost Per Unit | Goods Purchased | # of Units Sold | Cost Per Unit | Cost of Goods Sold | # of Units | Cost Per Unit | Inventory Balance | ||||||
December 7 | |||||||||||||||
December 14 | |||||||||||||||
December 15 | |||||||||||||||
December 21 | |||||||||||||||
Totals |
Required information
Use the following information for the Quick Study below.
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $45 each.
Purchases on December 7 | 15 units @ $18.00 cost |
Purchases on December 14 | 29 units @ $27.00 cost |
Purchases on December 21 | 25 units @ $32.00 cost |
|
QS 5-11 Perpetual: Inventory costing with LIFO LO P1
Required: Monson sells 25 units for $45 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO.
Perpetual LIFO: | |||||||||||||||
Goods purchased | Cost of Goods Sold | Inventory Balance | |||||||||||||
Date | # of units | Cost Per Unit | Cost of Goods Available for Sale | # of units sold | Cost Per Unit | Cost of Goods Sold | # of units | Cost per unit | Inventory Balance | ||||||
December 7 | 15 | @ | $18.00 | = | $270.00 | ||||||||||
December 14 | 29 | @ | $27.00 | = | $783.00 | @ | |||||||||
@ | $27.00 | = | |||||||||||||
$0.00 | |||||||||||||||
December 15 | = | ||||||||||||||
December 21 | 25 | @ | $32.00 | = | $800.00 | ||||||||||
Totals |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started