Question

Ch 05 Homework 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 18 units for $10 each points Purchases on December 7 Purchases on December 14 Purchases on December 21 units 26 units 18 units $4.ee cost $6.00 cost $7.00 cost QS 5.10 Perpetual: Assigning costs with FIFO LO P1 fora e fa 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 Date Cost Per Unit nventory Balance of Units Cost Per Inventory Unit Balance Units Cost of Goods Sold Sold December December 14 December 18

Answer 1

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
Dec 7	8	4	32				8	4	32
Dec 14	26	6	156				8 26	4 6	32 156
Dec 15				8 10	4 6	32 60	16	6	96
Dec 21	18	7	126				16 18	6 7	96 126
Totals			314			92			222

Ending inventory under FIFO perpetual = $222