Can you help determine Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 10 units for $50 each.| **Purchases on December 7** | 8 units @ $20.00 cost ||---------------------------------|------------------------------|| **Purchases on December 14** | 17 units @ $30.00 cost || **Purchases on December 21** | 15 units @ $36.00 cost |**Required:**Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. ### Perpetual FIFO Inventory System:The table depicts a Perpetual FIFO (First-In, First-Out) method which is commonly used for inventory management. Below is a breakdown of each column and its purpose:#### Columns:1. **Date:** - Indicates the date when transactions occurred.2. **Goods Purchased:** - **# of Units:** Number of units purchased. - **Cost Per Unit:** Cost per individual unit purchased. - **Goods Purchased:** Total cost of goods purchased.3. **Cost of Goods Sold:** - **# of Units Sold:** Number of units sold. - **Cost Per Unit:** Cost per individual unit sold (under FIFO, this would be the cost of the earliest acquired units). - **Cost of Goods Sold:** Total cost of goods sold.4. **Inventory Balance:** - **# of Units:** Number of units remaining. - **Cost Per Unit:** Cost per remaining unit. - **Inventory Balance:** Total cost of the remaining inventory.#### Rows:- **December 7**: Fields are all empty, indicating either no activity or the starting point with no initial inventory. - **December 14**: Data under this date is also empty, implying no transactions on this date. - **December 15**: Data under this date is currently empty, but this is where purchases and/or sales would be recorded if they occurred. - **December 21**: Again, all fields are currently empty. - **Totals**: This row is for summing up the totals of units and costs in their respective columns. Totals columns are highlighted in yellow, indicating summary fields.This table setup is designed to keep a perpetual record of inventory using the FIFO method, where the first items purchased are the first ones sold. When recording transactions:- New purchases are added under "Goods Purchased."- Sales are recorded under "Cost of Goods Sold." The cost per unit for sales reflects the cost of the oldest inventory available.- Inventory Balance is continually updated to reflect remaining stock, considering the sales and purchases.Users would input values to monitor inventory levels and costs, helping ensure accurate and efficient inventory management.

The inventory valuation method is used to evaluate the closing inventory and cost of goods sold…

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 10 units for $50 each. 8 units @ $20.00 cost 17 units @ $30.00 cost 15 units @ $36.00 cost Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.