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 26 units for $25 each. Purchases on December 7 16 units @ $10.00 cost 33 units @ $15.00 cost 26 units @ $18.00 cost Purchases on December 14 Purchases on December 21 Required: Monson sells 26 units for $25 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold Cost per unit Inventory Balance Date # of units December 7 December 14 December 15 December 21 Totals
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 26 units for $25 each. Purchases on December 7 16 units @ $10.00 cost 33 units @ $15.00 cost 26 units @ $18.00 cost Purchases on December 14 Purchases on December 21 Required: Monson sells 26 units for $25 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold Cost per unit Inventory Balance Date # of units December 7 December 14 December 15 December 21 Totals
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 26 units for $25 each.
Purchases on December 7
16 units @ $10.00 cost
33 units @ $15.00 cost
26 units @ $18.00 cost
Purchases on December 14
Purchases on December 21
Required:
Monson sells 26 units for $25 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the
December 31 ending inventory when costs are assigned based on LIFO.
Perpetual LIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
units
Cost per
unit
Cost of Goods
Available for
Sale
# of
units
sold
Cost per
unit
Cost of
Goods Sold
Cost per
unit
Inventory
Balance
Date
# of units
December 7
December 14
December 15
December 21
Totals
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