Question

Ch 05 Homework v Part 4 of 4 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. 2.5 points Purchases on December 7 Purchases on December 14 Purchases on December 21 8 units $4.ee cost 26 units @ $6.ee cost 18 units .ee cost QS 5.13 Perpetual: Inventory costing with specific Identification LO P1 for 19 f. Required: Monson sells 18 units for $10 each on December 15. Of the units sold, 6 are from the December 7 purchase and 12 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending Inventory when costs are assigned based on specific Identification Dances Specific Identification Perpetual Goods purchased of Date of units Cost per unit Inventory Balance of Cost per Inventory units unit Balance Cost of Goods Sold Cost per Cost of Goods Sold units Sold unit Goods December December 15 11 . December 21 Totais

Answer 1

Please find below table useful to compute desired results: -

A C D E F G H J K M 1 Particulars Price Specific Identification-Perpetual 2 1st purchase goods purchased cost of good sold inventory Balance Date 3 2nd purchase #of units cost per unit # of units cost Per unit COGS # of units cost per unit Inventory balance 4 3rd purchase Dec. 7 =B2 =C2 =F4*G4 =F4 =G4 =H4 5 Sold | 10 | Dec. 14 =B3 =C3 F5*G5 | I=L4 =M4 =N4 6 from 1st purchase =F5 =G5 =H5 7 from 2nd purchase Dec. 15 =B6 =M5 =17*J7 =L5-17 =M5 =L7*M7 =B7 =M6 =18*J8 1=L6-18 =M6 =L8*M8 Dec. 21 =B4 =C4 =F9*G9 =L7 =M7 =N7 =L8 =M8 =NS =F9 =G9 =H9 totals ESUM(K4:K11) =SUM(NO:N11) 13 14 Particulars Units 15 Units in basement 900 16 Damaged 17 Units in Van 18 Out on Consignment 19 Units in Ending Inventory 21 Units of Product on hand =B15 Units 22 Add: Units in Delivery Van 23 Add: Units in Consignment =B18 24 Total =SUMB21:B23) 25 Less: Units Damaged =B16 26 Total Units in period-end inventory =B24-B25 190 20 =B17 Units

End results would be as follows: -

E F G L M N B Units C D Price 4 8 Date inventory Balance cost per unit Inventory balance A 1 Particulars 2 1st purchase 3 2nd purchase 4 3rd purchase 5 Sold 6 from 1st purchase 7 from 2nd purchase H I I J K Specific Identification-Perpetual cost of good sold # of units cost Per unit COGS 32 156 # of units goods purchased #of units cost per unit 4 26 6 26 18 32 Dec. 7 10 || Dec. 14 26 6 56 Dec. 15 4 6 242 72 12 14 6 84 Dec. 21 18 7 126 4 14 84 187 96 TL 126 totals 218 150 13 14 Particulars Units 15 Units in basement 900 16 Damaged 11 17 Units in Van 18 Out on Consignment 190 19 20 Units in Ending Inventory 21 Units of Product on hand 900 Units 22 Add: Units in Delivery Van 150 23 Add: Units in Consignment 24 Total 1.240 25 Less: Units Damaged 26 Total Units in period-end inventory | 1,229 | Units 190