Required: Monson sells 30 units for $25 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson 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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $25 each.
  

 
Purchases on December 7 20 units @ $10.00 cost
Purchases on December 14 36 units @ $15.00 cost
Purchases on December 21 30 units @ $18.00 cost
 

 

Required:
Monson sells 30 units for $25 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification.

Requlred:
Monson sells 30 units for $25 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14
purchase. Monson 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
units
Cost per
# of
units
Cost per
unit
Cost of
Goods Sold
# of
Cost per
unit
Inventory
Balance
Date
unit
units
sold
December 7
December 14
December 15
December 21
Totals
Transcribed Image Text:Requlred: Monson sells 30 units for $25 each on December 15. Of the units sold, 16 are from the December 7 purchase and 14 are from the December 14 purchase. Monson 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 units Cost per # of units Cost per unit Cost of Goods Sold # of Cost per unit Inventory Balance Date unit units sold December 7 December 14 December 15 December 21 Totals
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