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 Cost per cost of Goods of of units unit Available for Sale units Cost Cost of per unit Goods Sold Wof units in ending per unit Goods Sold Cost per Ending unit Inventory sold a tory Purchases $ ol $ 0 December 7 December 14 December 21 Total $ 0.00 0.00 T or 0.00 0 $ 00 $ 0 $ 0

Answer 1

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 sold	Cost per unit	Cost of Goods Sold	# of Units in ending inventory	Cost per unit	Ending Inventory
Purchases:
Dec-07	10	6	60				10	6	60
Dec-14	20	12	240				30		300
Dec-21	15	14	210	15	12	180	30		330
Total	45			15		180	30		330

Kindly give a positive rating if you are satisfied with this solution and please ask if you have any query.

Thanks