Question

Required information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $45 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units @ $18.00 cost 30 units @ $27.00 cost 25 units @ $32.00 cost Required: Monson sells 25 units for $45 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance Cost of Goods Cost per Date # of units Available for # of units sold Cost per Cost of Goods unit Sold # of units Cost per unit Inventory Balance unit Sale December 7 = = $ $ 0.00 0.00 December 14 $ 0.00 December 15 December 21 = $ 0.00 Totals

Answer 1

	Goods purchase			Cost of goods sold			Inventory balance
Date	# of unit	Unit Cost	Total Cost	# of unit	Unit cost	Total Cost	# of unit	Unit Cost	Total
Dec 7	15	18	270				15	18	270
Dec 14	30	27	810				15 30	18 27	270 810
Dec 15				25	27	675	15 5	18 27	270 135
Dec 21	25	32	800				15 5 25	18 27 32	270 135 800
Dec 31	Balance			25		675	45		1205

Cost of goods sold = $675

Ending inventory = $1205