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[The following Informatlon 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 periodic Inventory system. Also, on December 15, Monson sells 15 units for $20 each. 10 units @ s 6 cost 20 units è $12 cost 15 units e $14 cost Purchases on December 7 Purchases on December 14 Purchases on December 21 Determine the costs assigned to ending Inventory when costs are assigned based on the FIFO method. Answer is complete but not entirely correct. Periodic FIFO: Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Cost # of units in ending inventory Cost Cost # of units per unit # of units sold per unit per unit Ending Inventory Purchases: December 7 10 $6.00 60 10 $6.00 S 60 December 20 12.00 240 7 12.00 84 13 156 14 12.00 December 21 15 14.00 210 15 14.00 210 Total 45 510 17 144 28 S 366

[The following Informatlon 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 periodic Inventory system. Also, on December 15, Monson sells 15 units for $20 each. 10 units @ s 6 cost 20 units è $12 cost 15 units e $14 cost Purchases on December 7 Purchases on December 14 Purchases on December 21 Determine the costs assigned to ending Inventory when costs are assigned based on the FIFO method. Answer is complete but not entirely correct. Periodic FIFO: Goods Available for Sale Cost of Goods Sold Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Cost # of units in ending inventory Cost Cost # of units per unit # of units sold per unit per unit Ending Inventory Purchases: December 7 10 $6.00 60 10 $6.00 S 60 December 20 12.00 240 7 12.00 84 13 156 14 12.00 December 21 15 14.00 210 15 14.00 210 Total 45 510 17 144 28 S 366

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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How do I fix the Periodic FIFO?:( tysm in advance

### Required Information **Scenario Overview:** Trey Monson starts a merchandising business on December 1 and makes the following inventory purchases. Monson uses a periodic inventory system. Additionally, on December 15, Monson sells 15 units for $20 each. **Purchases:** - **December 7:** 10 units @ $6 cost - **December 14:** 20 units @ $12 cost - **December 21:** 15 units @ $14 cost **Task:** Determine the costs assigned to ending inventory when costs are assigned using the FIFO (First-In, First-Out) method. ### Inventory Cost Calculation using Periodic FIFO The table provided illustrates the calculation of costs using the FIFO method: #### 1. Goods Available for Sale: - **December 7:** - **# of units:** 10 - **Cost per unit:** $6.00 - **Cost of Goods Available for Sale:** $60 - **December 14:** - **# of units:** 20 - **Cost per unit:** $12.00 - **Cost of Goods Available for Sale:** $240 - **December 21:** - **# of units:** 15 - **Cost per unit:** $14.00 - **Cost of Goods Available for Sale:** $210 **Total Goods Available for Sale:** 45 units, $510 total cost #### 2. Cost of Goods Sold: - **December 7 (Cost):** - **# of units sold:** 10 - **Cost per unit:** $6.00 - **Cost of Goods Sold:** $60 - **December 14 (Cost):** - **# of units sold:** 7 - **Cost per unit:** $12.00 - **Cost of Goods Sold:** $84 **Total Cost of Goods Sold:** 17 units, $144 total cost #### 3. Ending Inventory: - **Remaining from December 14:** - **# of units in ending inventory:** 13 - **Cost per unit:** $12.00 - **Ending Inventory:** $156 - **December 21:** - **# of units in ending inventory:** 15 - **Cost per unit:** $14.00 - **Ending
Transcribed Image Text:### Required Information **Scenario Overview:** Trey Monson starts a merchandising business on December 1 and makes the following inventory purchases. Monson uses a periodic inventory system. Additionally, on December 15, Monson sells 15 units for $20 each. **Purchases:** - **December 7:** 10 units @ $6 cost - **December 14:** 20 units @ $12 cost - **December 21:** 15 units @ $14 cost **Task:** Determine the costs assigned to ending inventory when costs are assigned using the FIFO (First-In, First-Out) method. ### Inventory Cost Calculation using Periodic FIFO The table provided illustrates the calculation of costs using the FIFO method: #### 1. Goods Available for Sale: - **December 7:** - **# of units:** 10 - **Cost per unit:** $6.00 - **Cost of Goods Available for Sale:** $60 - **December 14:** - **# of units:** 20 - **Cost per unit:** $12.00 - **Cost of Goods Available for Sale:** $240 - **December 21:** - **# of units:** 15 - **Cost per unit:** $14.00 - **Cost of Goods Available for Sale:** $210 **Total Goods Available for Sale:** 45 units, $510 total cost #### 2. Cost of Goods Sold: - **December 7 (Cost):** - **# of units sold:** 10 - **Cost per unit:** $6.00 - **Cost of Goods Sold:** $60 - **December 14 (Cost):** - **# of units sold:** 7 - **Cost per unit:** $12.00 - **Cost of Goods Sold:** $84 **Total Cost of Goods Sold:** 17 units, $144 total cost #### 3. Ending Inventory: - **Remaining from December 14:** - **# of units in ending inventory:** 13 - **Cost per unit:** $12.00 - **Ending Inventory:** $156 - **December 21:** - **# of units in ending inventory:** 15 - **Cost per unit:** $14.00 - **Ending
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