Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on FIFO method Certainly! Here is a transcription and explanation for an educational context.---**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:- Purchases on December 7: 10 units @ $6.00 cost- Purchases on December 14: 20 units @ $12.00 cost- Purchases on December 21: 15 units @ $14.00 costOn December 15, Monson sells 15 units for $20 each.---**QS 5-10 Perpetual: Assigning Costs with FIFO****Required:**Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.---### Table Explanation:The table is split into three main sections: Goods Purchased, Cost of Goods Sold, and Inventory Balance, all under the Perpetual FIFO system.1. **Goods Purchased:** - **Date:** Records when the goods were purchased. - **# of Units Purchased:** Number of units acquired on that date. - **Cost Per Unit:** Cost of each unit purchased. - **Goods Purchased:** The total cost of the units purchased (calculated by multiplying the number of units by the cost per unit).2. **Cost of Goods Sold:** - **# of Units Sold:** The number of units sold. - **Cost Per Unit:** The cost of each unit sold, based on the FIFO method. - **Cost of Goods Sold:** The total cost for the units sold.3. **Inventory Balance:** - **# of Units:** Number of units remaining in inventory. - **Cost Per Unit:** The unit cost of the remaining inventory. - **Inventory Balance:** Total cost of the remaining inventory.At the bottom, there is a note indicating: "Answer is complete but not entirely correct." This suggests that the calculation or input might need verification or adjustments.---This exercise illustrates how to apply the FIFO (First-In, First-Out) method using a perpetual inventory system, illustrating how inventory costs and sales affect financial statements.

Name: Monson uses a perpetual inventory system. Determine the costs assigned
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Description: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on FIFO method Certainly! Here is a transcription and explanation for an educational context.---**Required Information****Use the followi

FIRST IN FIRST OUT: In FIFO, Goods or Materials that are purchased first are used in sale or in…

Answered: Monson uses a perpetual inventory…

Business

Accounting

Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on FIFO method

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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