Use the following information for the Quick Study below. Trey Monson starts a...
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Accounting
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
Answer & Explanation
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