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 15 units for $20 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 10 units 20 units 15 units $6.00 cost 512.00 cost $14.00 cost

yes it does. sorry about that !

Answer 1

Perpetual FIFO

	Goods Purchased			Cost Of Goods Sold			Inventory Balance
	units	Cost per unit	Goods purchased	units	Cost per unit	Cost of Goods Sold	units	Cost per unit	Inventory Balance
Dec7	10	6	$60	-		-	10	$6	$60
Dec 14	20	$12	$240	-		-	10 20	$6 $12	$60 $240
Dec 15	-		-	10 5	$6 $12	$60 $60	15	12	$180
Dec 21	15	14	$210	-		-	15 15	$12 $14	$180 $210
Total	45		$510	15		$120	30		$390

Hence,

Costs Assigned to Ending Inventory on 31 Dec 2019 based on FIFO , is

15 Units @ $12 = $180
15 Units @ $14 = $210