Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 30 units for $35 each. 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 LIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 20 units @ $14.00 cost 36 units @ $21.00 cost 30 units @ $25.00 cost Goods purchased Number of Cost per units unit Cost of Goods Available for Sale Perpetual LIFO: Cost of Goods Sold Number : of units sold Inventory Balance. Cost per unit Cost per Cost of Goods Number of unit Sold units 35 Inventory Balance
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Monson uses a perpetual inventory system. Also, on December 15, Monson sells 30 units for $35 each. 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 LIFO method. Date December 7 December 14 Total December 14 December 15 Total December 15 20 units @ $14.00 cost 36 units @ $21.00 cost 30 units @ $25.00 cost Goods purchased Number of Cost per units unit Cost of Goods Available for Sale Perpetual LIFO: Cost of Goods Sold Number : of units sold Inventory Balance. Cost per unit Cost per Cost of Goods Number of unit Sold units 35 Inventory Balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Monson uses a perpetual inventory system. Also, on December 15, Monson sells 30 units for $35 each.
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 LIFO method.
Date
December 7
December 14
Total December 14
December 15
Total December 15
20 units@ $14.00 cost
36 units @ $21.00 cost
30 units @ $25.00 cost
Goods purchased
Number of Cost per
units
unit
Cost of Goods
Available for
Sale
Perpetual LIFO:
Cost of Goods Sold
Number Cost per Cost of Goods
of units
unit
Sold
sold
Inventory Balance
Number of
units
Cost per
unit
Inventory
Balance
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