Question

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 $45 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units @ $18.00 cost 30 units @ $27.00 cost 25 units @ $32.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Perpetual FIFO: Goods Purchased # of Cost Per Goods Date Units Unit Purchased December 7 15 @ $ 18.00 = $ 270.00 Cost of Goods Sold # of Cost Per Cost of Goods Units Soldº Unit Sold Inventory Balance Cost Per # of Units Inventory Unit Balance 15 @ $ 18.00 = $ 270.00 December 30 @ $ 27.00 = $ 810.00 $ 270.00 14 15 @ 30 @ $ 18.00 = $ 27.00 = 810.00 $1,080.00 December 15 15@[ $ 18.00 = $ 270.00 @ 10 @ $ 18.00 = $ 27.00 = $ 270.00 $ 270.00 December 25 @ $ 32.00] = $ 800.00 Totals $ 540.00

Answer 1

units Date Dec-07 Purchases Dec-14 Purchases Perpetual FIFO Goods Purchased Cost of Goods sold Inventory Balance Unit Cost Total Cost units Unit Cost Total Cos units Unit Cost Total Cost 15 18 270 15 18 270 30 27 810 18 2 70|| 27 810 451 1080 15 18 270 540 10 27 270 125 540 20 5 40 800 32 800 70 1880 25 540 45 L 1340 Dec-15 Sales Dec-21 Purchases 2715401 Totals