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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 29 units for $50 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
Total
Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Purchases:
December 7
December 14
December 21
19 units @ $20.00 cost
36 units @ $30.00 cost
29 units @ $36.00 cost
Goods Available for Sale
Number of
units
Cost per
unit
Cost of Goods
Available for
Sale
Periodic FIFO:
Cost of Goods Sold
Number of
units sold
Cost per
unit
Cost of
Goods Sold
Ending Inventory
Number of
units in
ending
inventory
Cost per
unit
4
Ending
Inventory](https://content.bartleby.com/qna-images/question/2fe8e0e7-0270-4471-ab40-78cd3d82da6c/3e0a9e9f-b38e-4b25-a03e-45d74993268f/014q20g_thumbnail.jpeg)
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Required information
[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 29 units for $50 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
Total
Determine the costs assigned to ending inventory when costs are assigned based on the FIFO method.
Purchases:
December 7
December 14
December 21
19 units @ $20.00 cost
36 units @ $30.00 cost
29 units @ $36.00 cost
Goods Available for Sale
Number of
units
Cost per
unit
Cost of Goods
Available for
Sale
Periodic FIFO:
Cost of Goods Sold
Number of
units sold
Cost per
unit
Cost of
Goods Sold
Ending Inventory
Number of
units in
ending
inventory
Cost per
unit
4
Ending
Inventory
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