Question

Required information Trey Monson starts a merchandising business on December 1 and enters into three inventory purchases: Purchases on December 7 Purchases on December 14 Purchases on December 21 10 units $ 6.00 cost 20 units @ $12.00 cost 15 units @ $14.00 cost Required: Monson sells 15 units for $20 each on December 15. Of the units sold, eight are from the December 7 purchase and seven are from the December 14 purchase and assume the periodic inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on specific identification. Specific Identification Inventory Balance Cost of Goods Available for Sale Cost of Goods unit Available for Sale Cost of Goods Sold of units Cost Cost of per unit Goods Sold sold # of units Cost per # of units in ending Inventory Cost per unit Ending Inventory Purchases: o $ 0.00 0.00 0 December 7 December 14 December 21 Total $ 0 $ 0.00 S 0 0 0.00 0 0.00 0 $ 00S 0

Answer 1

Cost of Goods Sold Ending Inventory Specific Identification Cost of Goods Available for Sale Cost of Goods Cost per # of units Available for unt Sale # of units Cost per unit Cost of Goods Sold # of units Cost per unit Ending Inventory Purchases: 48 12 Dec-07 Dec-141 Dec-21 10 20 15 45 6.00 12.00 14.00 2407 210 510 6.00 12.00 14.00 2 13 15 34 0 132 6.00 12.00 14.00 156 210 0 15 TOTE 378