Question

O 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 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units e $10.00 cost 30 units @ $15.00 cost 25 units $18.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO

Answer 1

Cost of Goods Sold Inventory Balance Perpetual-FIFO Goods purchased Cost of goods Available Date # of units Cost per unit for sale 7-Dec 15 10.00 150 Cost of Goods Sold Inventory Balance #of units Cost per unit # of units Cost per unit 15 10.00 150 14-Dec 30 15.00 450 15 10.00 150 30 15.00 450 15-Dec 15 150 20 15.00 300 10.00 15.00 10 150 21-Dec 25 18.00 450 20 300 15.00 18.00 25 450 Totals $ 1,050 $ 300 Ending Inventory $ 750 Cost of Goods Sold Inventory Balance Perpetual-LIFO Goods purchased Cost of goods Available Date # of units Cost per unit for sale 7-Dec 15 10.00 150 Cost of Goods #of units Cost per unit Sold # of units Cost per unit 15 10.00 Inventory Balance 150 14-Dec 30 15.00 450 15 150 10.00 15.00 30 450 15-Dec 25 15.00 375 15 150 10.00 15.00 5 75 21-Dec 25 18.00 450 150 75 15 10.00 5 15.00 25 18.00 Ending Inventory 450 Totals $ 1,050 $ 375 $ 675 Calculation of Rates for balance: Cost of Goods Sold Inventory Balance Weighted Average-Perpetual Goods purchased Cost of goods Available Date # of units Cost per unit for sale 7-Dec 15 10.00 150 Cost of Goods Sold # of units Cost per unit Inventory Balance 150 # of units Cost per unit 15 10.00 Date Rate=Total Cost available for sale Toltal Units available for sale Rate 14-Dec (150+450)/(15+30) 13.33 21-Dec (267+450)/(20+25) 15.93 14-Dec 30 15.00 450 45 13.33 600 15-Dec 25 13.33 333 20 13.33 267 25 18.00 21-Dec Totals 450 1,050 45 15.93 Ending Inventory 717 717 $ $ 333 $ Note: In case of weighted average method, materials are issued at the rate at which the previous balance is valued. So here for any issue the rate is taken from the previous balance Please give likes for the work. Thanks & Regards.