Question

21 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. It 2 of Purchases on December 7 Purchases on December 14 Purchases on December 21 units 26 units 18 units $4.80 cost $6.ee cost $7.00 cost QS 5-11 Perpetual: Inventory costing with LIFO LO P1 To 10 f Required: Monson sells 18 units for $10 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 UFO Inventory Balance Goods purchased Cost per Cost of Goods un Available for Sale of units Cost of Goods Sold of its Cost per Cost of Sold Goods Sold Date of units Cost per unit Inventory Balance December December 14 December 16 1

Answer 1

Perpetual LIFO

	Goods purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	Goods purchased	# of units sold	Cost per unit	cost of goods sold	# of units	cost per unit	Inventory balance
Dec 7	8	4	32				8	4	32
Dec 14	26	6	156				8 26	4 6	32 156
Dec 15				18	6	108	8 8	4 6	32 48
Dec 21	18	7	126				8 8 18	4 6 7	32 48 126
Totals			314			108			206

Ending inventory under LIFO perpetual = $206

Perpetual Weighted average

	Goods purchased			Cost of goods sold			Inventory balance
Date	# of units	Cost per unit	Goods purchased	# of units sold	Cost per unit	cost of goods sold	# of units	cost per unit	Inventory balance
Dec 7	8	4	32				8	4	32
Dec 14	26	6	156				34	5.53	188
Dec 15				18	5.53	99.54	16	5.53	88.48
Dec 21	18	7	126				34	6.31	214.48
Totals			314			99.54			214.48

Ending inventory under Weighted average perpetual = $99.54