## Educational Website Example### Required InformationTrey Monson starts a merchandising business on December 1 and engages in the following three inventory purchases. On December 15, Monson sells 30 units for $35 each.- **Purchases on December 7:** 20 units at $14.00 cost- **Purchases on December 14:** 36 units at $21.00 cost- **Purchases on December 21:** 30 units at $25.00 cost### TaskMonson sells 30 units for $35 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 (Last In, First Out).### Perpetual LIFO Inventory TableThe table is divided into three main sections: Goods Purchased, Cost of Goods Sold, and Inventory Balance, each further divided into columns:1. **Date** – The date of each transaction.2. **Goods Purchased**: - **# of units** – Number of units purchased. - **Cost per unit** – Cost of each unit. - **Cost of Goods Available for Sale** – Total cost of goods available before sales.3. **Cost of Goods Sold**: - **# of units sold** – Number of units sold. - **Cost per unit** – Cost of each unit sold. - **Cost of Goods Sold** – Total cost of units sold.4. **Inventory Balance**: - **# of units** – Remaining units in inventory. - **Cost per unit** – Cost of remaining inventory units. - **Inventory Balance** – Total value of remaining inventory.**Transaction Details (Illustrated in Table):**- **December 7:** - 20 units purchased at $14.00 each. - **December 14:** - 36 units purchased at $21.00 each. - **December 15:** - 30 units sold at $35 each. The cost of the 30 units sold is calculated using LIFO; hence, the most recently purchased units (36 units at $21.00) are sold first. - **December 21:** - 30 units purchased at $25.00 each.### Understanding LIFO in a Perpetual Inventory SystemUsing the LIFO method, when sales occur

Under LIFO method, the inventory purchased last is sold first. What comes in last, goes out first.…

Answered: Required: Monson sells 30 units for $35…

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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Cullumber Company uses a perpetual inventory system and reports the following for the month of June. Date June 1 12 23 30 (a1) Explanation Units June 1 Inventory Purchase Purchase June 12 Inventory June 15 June 23 June 27 $ $ $ $ $ 130 Calculate the weighted-average cost per unit, using a perpetual inventory system. Assume a sale of 400 units occurred on June 15 for a selling price of $7 and a sale of 50 units on June 27 for $8. (Round intermediate calculations to O decimal places, e.g. 152 and final answers to 3 decimal places, e.g. 5.125.) eTextbook and Media Save for Later 370- 200 250 Unit Cost $5 6 7 Total Cost $650 2,220 1,400 Attempts: 0 of 10 used Submit Answer
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A company reports the following beginning inventory and two purchases for the month of January. On January 26, the company sells 280 units. Ending inventory at January 31 totals 130 units. Beginning inventory on January 1 Purchase on January 9 Purchase on January 25 Perpetual FIFO: Required: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method. Date January 1 January 9 January 25 January 26 Totals Goods purchased # of units Cost per unit Units Unit Cost 250 60 100 # of units sold $2.30 2.50 2.64 Cost of Goods Sold Cost per Cost of Goods unit Sold Inventory Balance Cost per unit # of units Inventory Balance
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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 30 units for $35 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $14.00 cost 36 units @ $21.00 cost 30 units @ $25.00 cost

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Required: Monson sells 30 units for $35 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned the December 31 ending Inventory when costs are assigned based on LIFO.