Question

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 30 units for $50 each. Purchases on December 14 Purchases on December 21 20 units @ $20.00 cost 34 units @ $30.00 cost 30 units @ $36.00 cost QS 5-11 Perpetual: Inventory costing with LIFO LO P1 Required: Monson sells 30 units for $50 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.

Answer 1

	Goods Purchased			Cost of Goods Sold			Inventory Balance
Date	Units	Cost / unit	Total Cost	Units	Cost / unit	Total Cost	Units	Cost / unit	inventory Balance
7-Dec	20	$2.00	$40.00				20	$20.00	$400.00
14-Dec	34	$30.00	$1,020.00				20	$20.00	$400.00
							34	$30.00	$1,020.00
15-Dec				30	$30.00	$900.00	20	$20.00	$400.00
							4	$30.00	$120.00
21-Dec	30	$36.00	$1,080.00				20	$20.00	$400.00
							4	$30.00	$120.00
							30	$36.00	$1,080.00
Total	84		$2,140.00	30		$900.00	54		$1,600.00