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Required information [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 15 units for $23 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 Totals December 21 10 units @ $9.00 cont 20 units @ $15.00 cost 15 units @ $17.00 cost Goods Purchased Cost Per Unit # of Units 10 at $ 9.00 Goods Purchased $ 90.00 15 at $ 17.00- 20 at $15.00 $ 300.00 Perpetual FIFO. $255.00 # of Units Sold Cost of Goods Sold Cost Per Cost of Goods Unit Sold $15.00 Inventory Balance Cost Per Unit #of Units 10 at 0 $ 9.00- Inventory Balance 10 at $9.00 20 at $ 15.00- $ 90.00 $90.00 300.00 $ 390.00

Required information [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 15 units for $23 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 Totals December 21 10 units @ $9.00 cont 20 units @ $15.00 cost 15 units @ $17.00 cost Goods Purchased Cost Per Unit # of Units 10 at $ 9.00 Goods Purchased $ 90.00 15 at $ 17.00- 20 at $15.00 $ 300.00 Perpetual FIFO. $255.00 # of Units Sold Cost of Goods Sold Cost Per Cost of Goods Unit Sold $15.00 Inventory Balance Cost Per Unit #of Units 10 at 0 $ 9.00- Inventory Balance 10 at $9.00 20 at $ 15.00- $ 90.00 $90.00 300.00 $ 390.00

FINANCIAL ACCOUNTING
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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Required information [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 15 units for $23 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 Totals December 21 10 units @ $9.00 cost 20 units @ $15.00 cost 15 units @ $17.00 cost Goods Purchased Cost Per Unit 10 at $ 9.00 # of Units Goods Purchased 20 at $15.00 - 15 at $ 17.00 = $ 90.00 $ 300.00 $255.00 Perpetual FIFO # of Units Sold Cost of Goods Sold Cost Per Cost of Goods Unit Sold $ 15.00 = Inventory Balance Cost Per Unit 10 at $ 9.00- # of Units 10 at 20 at 0 $9.00 = $ 15.00- Inventory Balance $ 90.00 $ 90.00 300.00 $390.00
Transcribed Image Text:Required information [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 15 units for $23 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 Totals December 21 10 units @ $9.00 cost 20 units @ $15.00 cost 15 units @ $17.00 cost Goods Purchased Cost Per Unit 10 at $ 9.00 # of Units Goods Purchased 20 at $15.00 - 15 at $ 17.00 = $ 90.00 $ 300.00 $255.00 Perpetual FIFO # of Units Sold Cost of Goods Sold Cost Per Cost of Goods Unit Sold $ 15.00 = Inventory Balance Cost Per Unit 10 at $ 9.00- # of Units 10 at 20 at 0 $9.00 = $ 15.00- Inventory Balance $ 90.00 $ 90.00 300.00 $390.00
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