Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 6, Problem 14QS
Perpetual: Assigning costs with FIFO P1
Trey Monson slam a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 15 units for $20 each.
| Purchases on December 7 | 10 units@$ 6.00 cost |
| Purchases on December 14 | 20 units@ $12.00 cost |
| Purchases on December 21. | 15 units@ $14.00 cost |
Required
Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. (Round per unit costs and inventory amounts to cents.)
QS 6-10
Periodic: inventory costing with FIFO P3
Refer to the information in QS 6-10 and assume the perpetual inventory system is used Determine the costs assigned to ending inventory when costs are assigned based on the LIFO method. (Round per unit costs and inventory amounts to cents.)
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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 Decenber 14
Purchases on December 21
15 units e $10.00 cost
Je units e $15.00 cost
25 units e $18.00 cost
Required:
Monson sells 25 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
# of
units
Cost of Goods
Cost per Available for
# of
units
sold
Cost per Cost of Goods
unit
Cost per
unit
Inventory
Balance
Date
# of units
unit
Sold
Sale
December 7
Docember 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
Required information
Use the following information for the Quick Study below.
Trey Monson starts a merchandising business on December 1 and enters into three inventory purchases:
Purchases on December 7
15 units @ $18.00 cost
Purchases on December 14
29 units @ $27.00 cost
Purchases on December 21
25 units @ $32.00 cost
QS 5-10 Periodic: Assigning costs with FIFO LO P1
Required:Monson sells 25 units for $45 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on FIFO.
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Chapter 6 Solutions
Principles of Financial Accounting.
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