FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Required information
Use the following information for the Quick Study below. (Algo) (11-14)
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 perpetual inventory system. Also, on December 15, Monson sells 15 units for $32 each.
Total
Purchases on December 7
Purchases on December 14
Purchases on December 21
QS 5-14 (Algo) Perpetual: Inventory costing with specific identification LO P1
Of the units sold, 8 are from the December 7 purchase and 7 are from the December 14 purchase. Determine the costs assigned to
ending inventory when costs are assigned based on specific identification.
Purchases:
December 7
December 14
December 21
10 units @ $18.00 cost
20 units@ $24.00 cost
15 units@ $26.00 cost
# of units
Goods Available for Sale
10
20
15
45
Cost per
unit
Specific Identification
Cost of Goods
Available for
Sale
$ 18.00 $
24.00
26.00
$
180
480
390
1,050
Cost of Goods Sold
# of
units
sold
Cost Cost of
per unit Goods Sold
8 $18.00 $
7
24.00
15
$
144
168
312
Ending Inventory
# of units
in ending
Inventory
10
2
12
Cost per Ending
unit Inventory
$18.00 $
24.00
26.00
$
0
240
52
292
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Transcribed Image Text:Required information Use the following information for the Quick Study below. (Algo) (11-14) 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 perpetual inventory system. Also, on December 15, Monson sells 15 units for $32 each. Total Purchases on December 7 Purchases on December 14 Purchases on December 21 QS 5-14 (Algo) Perpetual: Inventory costing with specific identification LO P1 Of the units sold, 8 are from the December 7 purchase and 7 are from the December 14 purchase. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Purchases: December 7 December 14 December 21 10 units @ $18.00 cost 20 units@ $24.00 cost 15 units@ $26.00 cost # of units Goods Available for Sale 10 20 15 45 Cost per unit Specific Identification Cost of Goods Available for Sale $ 18.00 $ 24.00 26.00 $ 180 480 390 1,050 Cost of Goods Sold # of units sold Cost Cost of per unit Goods Sold 8 $18.00 $ 7 24.00 15 $ 144 168 312 Ending Inventory # of units in ending Inventory 10 2 12 Cost per Ending unit Inventory $18.00 $ 24.00 26.00 $ 0 240 52 292
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