Required information ABC starts a merchandising business on December 1 and enters into the following three Inventory purchases. Also, on December 15, ABC sells 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units e s1e.ee cost 30 units e s15.ee cost 25 units e $18.ee cost Required: ABC sells 25 units for $25 each on December 15. Of the units sold, 12 are from the December 7 purchase and 13 are from the December 14 purchase. ABC uses a perpetual inventory system. Determine the costs assigned to the December 31 ending Inventory when costs are assigned based on specific identification.
Required information ABC starts a merchandising business on December 1 and enters into the following three Inventory purchases. Also, on December 15, ABC sells 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units e s1e.ee cost 30 units e s15.ee cost 25 units e $18.ee cost Required: ABC sells 25 units for $25 each on December 15. Of the units sold, 12 are from the December 7 purchase and 13 are from the December 14 purchase. ABC uses a perpetual inventory system. Determine the costs assigned to the December 31 ending Inventory when costs are assigned based on specific identification.
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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![Required information
ABC starts a merchandising business on December 1 and enters Into the following three Inventory
purchases. Also, on December 15, ABC sells 25 units for $25 each.
Purchases on December 7
Purchases on December 14
15 units e $18.00 cost
38 units e $15.00 cost
25 units e $18.00 cost
Purchases on December 21
Required:
ABC sells 25 units for $25 each on December 15. Of the units sold, 12 are from the December 7 purchase and 13 are from the
December 14 purchase. ABC uses a perpetual Inventory system. Determine the costs assigned to the December 31 ending
Inventory when costs are assigned based on specific Identification.
Specific Identification-Perpetual:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
# of
units
Cost per
unit
units
sold
Cost per Cost of Goods
unit
# of
units
Cost per
unit
Inventory
Balance
Date
Sold
December 7
S 0.00
December 14
S 0.00
0.00
December 15
0.00
0.00
December 21
S 0.00
Totals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F807def44-edd7-4cac-a993-79ca41d29ec4%2Fspt63dc_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
ABC starts a merchandising business on December 1 and enters Into the following three Inventory
purchases. Also, on December 15, ABC sells 25 units for $25 each.
Purchases on December 7
Purchases on December 14
15 units e $18.00 cost
38 units e $15.00 cost
25 units e $18.00 cost
Purchases on December 21
Required:
ABC sells 25 units for $25 each on December 15. Of the units sold, 12 are from the December 7 purchase and 13 are from the
December 14 purchase. ABC uses a perpetual Inventory system. Determine the costs assigned to the December 31 ending
Inventory when costs are assigned based on specific Identification.
Specific Identification-Perpetual:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
# of
units
Cost per
unit
units
sold
Cost per Cost of Goods
unit
# of
units
Cost per
unit
Inventory
Balance
Date
Sold
December 7
S 0.00
December 14
S 0.00
0.00
December 15
0.00
0.00
December 21
S 0.00
Totals
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