Question

Required information Trey Monson starts a merchandising business on December 1 and enters into three inventory purchases: Purchases on December 7 Purchases on December 14 Purchases on December 21 10 units @ $6.00 cost 20 units $12.00 cost 15 units $14.00 cost Required: Monson sells 15 units for $20 each on December 15. Assume the periodic Inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Periodic LIFO: Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance of units cost per unit Cost of Goods Available for Sale #of units Cost Cost of of units per unit Goods Sold in ending Inventory Cost per Ending unit Inventory sold Purchases December 7 0 $0.00 $ 0. 000 December 14 0.00 December 21 Total o 0 0 SC

Answer 1

Periodic LIFO:	Inventory on hand			Cost of Goods Sold			Inventory Balance
	# of units (a)	Cost per unit (b)	Inventory Value (a*b)	# of units sold (d)	Cost per unit (e )	Cost of Goods Sold (d*e)	# of units in ending inventory (f)	Cost per unit (g)	Ending Inventory (f*g)
Purchases:
December 7	10	$6	$60				10	$6	$60
December 14	20	$12	$240				20	$12	$240
December 21	15	$14	$210	15	$14.00	$210
Total	45	$11.33	$510	15	$14.00	$210	30	$18	$300