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 Purchases on December 14 Purchases on December 21 8 units @ $20.00 cost 17 units @ $30.00 cost 15 units @ $36.00 cost Required: Monson sells 10 units for $50 each on December 15. Of the units sold, 6 are from the December 7 purchase and 4 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.
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 Purchases on December 14 Purchases on December 21 8 units @ $20.00 cost 17 units @ $30.00 cost 15 units @ $36.00 cost Required: Monson sells 10 units for $50 each on December 15. Of the units sold, 6 are from the December 7 purchase and 4 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 sells 10 units for $50 each on December 15. Of the units sold, 6 are from the December 7 purchase and 4 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.
Transcribed Image Text:Specific Identification-Perpetual:
Goods purchased
Cost of Goods Sold
Inventory Balance
# of
units
Cost per
unit
# of
units
sold
Cost per Cost of Goods
unit
Cost per
unit
Inventory
Balance
Date
# of units
Sold
December 7
December 14
December 15
December 21
Totals
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