Required information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units @ $1.00 cost 30 units ē $15.00 cost 25 units @ $18.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Perpetual FIFO: Goods Purchased Cost of Goods Sold # of Units Sold Inventory Balance # of Units Cost Per Unit Goods Purchased Cost Per Cost of Goods Unit # of Units Cost Per Unit Inventory Balance Date Sold December 7 December 14
Required information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 25 units for $25 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 15 units @ $1.00 cost 30 units ē $15.00 cost 25 units @ $18.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Perpetual FIFO: Goods Purchased Cost of Goods Sold # of Units Sold Inventory Balance # of Units Cost Per Unit Goods Purchased Cost Per Cost of Goods Unit # of Units Cost Per Unit Inventory Balance Date Sold December 7 December 14
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases.
Also, on December 15, Monson sells 25 units for $25 each.
Purchases on December 7
Purchases on December 14
Purchases on December 21
15 units @ $1.00 cost
30 units ē $15.00 cost
25 units @ $18.00 cost
Required:
Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO
method.
Perpetual FIFO:
Goods Purchased
Cost of Goods Sold
# of
Units
Sold
Inventory Balance
# of
Units
Cost Per
Unit
Goods
Purchased
Cost Per Cost of Goods
Unit
# of Units Cost Per
Unit
Inventory
Balance
Date
Sold
December 7
December
14
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