Question

YMCU Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases Also, on December 15, Monson sells 27 units for $40 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 17 units 33 units 27 units $16.00 cost $24.00 cost $29.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method Perpetual FIFO; Cost of Goods Sold Goods Purchased Cost Per Goods Unit Purchased of Units Date Inventory Balance o ftolis Cost Per Inventory Unit Balance Units Cost Per Cost of Goods Unit Sold December 7 December

Answer 1

	Goods purchased			Cost of goods sold			Ending inventory
Date	Units	Unit cost	Goods purchased	Units	Unit cost	Cost of goods sold	Units	Unit cost	Inventory balance
Dec.7	17	16	272				17	16	272
Dec. 14	33	24	792				17	16	272
							33	24	792
Dec. 15				17	16	272
				10	24	240	23	24	552
Dec. 21	27	29	783				23	24	552
							27	29	783
							50		1,335

Cost of inventory on December 31 = $1,335

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