Question

[The following information applies to the questions displayed below.] Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 29 units for $50 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 19 units @ $20.00 cost 36 units @ $30.00 cost 29 units @ $36.00 cost Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. Perpetual LIFO: Cost of Goods Sold Inventory Balance Goods purchased Cost per Cost of Goods unit Available for Sale Cost per # of units sold # of units Cost per Cost of Goods unit Sold # of units Inventory Balance Date unit $ 0.00 December 7 December 14 $ 0.00 $ 0.00 December 15

Answer 1

Solution:

Computation of ending inventory and Cost of Goods sold under LIFO (Perpetual)
Date	Goods Purchased		Cost of goods sold	Inventory Balance
Units	Cost per unit	Cost of goods	Units	Cost per unit	COGS	Units	Cost per unit	Inventory Balance
7-Dec	19	$20.00	$380.00				19	$20.00	$380.00
14-Dec	36	$30.00	$1,080.00				19	$20.00	$380.00
							36	$30.00	$1,080.00
									$1,460.00
15-Dec				29	$30.00	$870.00	19	$20.00	$380.00
							7	$30.00	$210.00
									$590.00
21-Dec	29	$36.00	$1,044.00				19	$20.00	$380.00
							7	$30.00	$210.00
							29	$36.00	$1,044.00
Total				29		$870.00	55		$1,634.00