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 30 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $10.00 cost 36 units @ $15.00 cost 30 units @ $18.00 cost QS 5-11 (Algo) Periodic: Inventory costing with FIFO LO P1 Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
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 30 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $10.00 cost 36 units @ $15.00 cost 30 units @ $18.00 cost QS 5-11 (Algo) Periodic: Inventory costing with FIFO LO P1 Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Use the following information for the Quick Study below. (Algo) (11-14)
[The following information 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 30 units for $25 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
20 units @ $10.00 cost
36 units @ $15.00 cost
30 units @ $18.00 cost
QS 5-11 (Algo) Periodic: Inventory costing with FIFO LO P1
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
Number
Cost
Number
of units
Cost
per unit
Goods
of units
per
Cost of
Goods
Number
of units
Cost
per
Available
in ending
Ending
Inventory
sold
unit
Sold
unit
for Sale
inventory
Purchases:
December 7
20
$
10.00
$
200
0
December
36
15.00
540
0
14
December
30
18.00
540
21
Total
86
$
1,280
20 $ 10.00
$
200
36 $ 15.00
$
540
30
18.00
540
86
$
1,280](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd29c6375-cd9c-4947-8eaa-c1ffafb33874%2F20f01a9c-fb98-436c-ab63-4a2c1544be58%2Fcg8tsrc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Quick Study below. (Algo) (11-14)
[The following information 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 30 units for $25 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
20 units @ $10.00 cost
36 units @ $15.00 cost
30 units @ $18.00 cost
QS 5-11 (Algo) Periodic: Inventory costing with FIFO LO P1
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
Number
Cost
Number
of units
Cost
per unit
Goods
of units
per
Cost of
Goods
Number
of units
Cost
per
Available
in ending
Ending
Inventory
sold
unit
Sold
unit
for Sale
inventory
Purchases:
December 7
20
$
10.00
$
200
0
December
36
15.00
540
0
14
December
30
18.00
540
21
Total
86
$
1,280
20 $ 10.00
$
200
36 $ 15.00
$
540
30
18.00
540
86
$
1,280
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