Question

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 28 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 18 units @ $10.00 cost 35 units @ $15.00 cost 28 units @ $18.00 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: Inventory Balance Goods Purchased Cost Per Goods Unit Purchased Cost of Goods Sold Cost Per Cost of Goods Unit Sold # of Units Date # of Units Sold # of Units Cost Per Unit Inventory Balance December 7 December December 15 December Totals < Prev 1 2 3 of 4 Next >

Answer 1

	Goods purchased				Cost of Goods sold				Inventory Balance
	No. of	Cost per	Goods		No. of	Cost per	Cost of		No. of	Cost per	Inventory
Date	units	unit	purchased		units sold	unit	goods sold		units	unit	Balance
7-Dec	18	$   10.00	$ 180.00						18	$   10.00	$ 180.00
14-Dec	35	$   15.00	$ 525.00						18	$   10.00	$ 180.00
									35	$   15.00	$ 525.00
15-Dec					18	$   10.00	$ 180.00		25	$   15.00	$ 375.00
					10	$   15.00	$ 150.00
21-Dec	28	$   18.00	$ 504.00						25	$   15.00	$ 375.00
									28	$   18.00	$ 504.00
Totals							$ 330.00				$ 879.00