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 7 Purchases on December 14 Purchases on December 21 20 units @ $20.00 cost 34 units @ $30.00 cost 30 units @ $36.00 cost QS 5-13 Perpetual: Inventory costing with specific identification LO P1 Required: Monson sells 30 units for $50 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.

Answer 1

Monson Perpetual Inventory System Inventory sheet - Specific identification Goods Purchased Date Quantity Cost per unit Total cost 7-Dec 20 $ 20.00 400.00 14-Dec 34 $ 30.00 1,020.00 15-Dec Cost of goods sold Ending Inventory Quantity Cost per unit Total cost Quantity Cost per unit Total cost 20 $ 20.00 400.00 20 $ 20.00 400.00 34 $ 30.00 1,020.00 54 1,420.00 16 $ 20.00 320.00 4 $ 20.00 80.00 14 $ 30.00 420.00 20 $ 30.00 600.00 740.00 680.00 4 $ 20.00 80.00 20 $ 30.00 600.00 30 $ 36.00 1,080.00 1,760.00 3 0 7 40. 0054 1,760.00 30 24 21-Dec 30 $ 36.00 1,080.00 Totals 84 2,500. 00