Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $25 each. Purchases on December 720 units @ $10.00 costPurchases on December 1436 units @ $15.00 costPurchases on December 2130 units @ $18.00 cost Requlred:Monson sells 30 units for $25 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to theDecember 31 ending inventory when costs are assigned based on LIFO.Perpetual LIFO:Goods purchasedCost of Goods SoldInventory BalanceCost ofGoodsAvailable forSale# ofunitsCost per# ofunitsCost perunitCost ofGoods SoldCost per InventoryunitDate# of unitsunitBalancesoldDecember 7December 14December 15December 21Totals

Name: Trey Monson starts a merchandising business on December 1 and enters i
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Description: Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $25 each. Purchases on December 720 units @ $10.00 costPurchases on December 1436 uni

LIFO means Last in first out. The inventory that is received last is issued first.

Answered: Trey Monson starts a merchandising…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 30 units for $25 each.


Purchases on December 7	20 units @ $10.00 cost
Purchases on December 14	36 units @ $15.00 cost
Purchases on December 21	30 units @ $18.00 cost

Requlred:
Monson sells 30 units for $25 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the
December 31 ending inventory when costs are assigned based on LIFO.
Perpetual LIFO:
Goods purchased
Cost of Goods Sold
Inventory Balance
Cost of
Goods
Available for
Sale
# of
units
Cost per
# of
units
Cost per
unit
Cost of
Goods Sold
Cost per Inventory
unit
Date
# of units
unit
Balance
sold
December 7
December 14
December 15
December 21
Totals

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