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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 Solved by verified expert
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