Question

! 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 30 units for $35 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units @ $14.00 cost 36 units @ $21.00 cost 30 units @ $25.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. . Answer is complete but not entirely correct. Perpetual FIFO: # of Units Date Cost of Goods Sold Cost Cost of Per Goods Sold Unit # of Units Sold Goods Purchased Cost Goods Per Purchased Unit $ $ @ 14.00 280.00 $ $ @ 21.00 756.00 Inventory Balance Cost # of Units Per Inventory Balance Unit $ 20 @ $ 280.00 14.00 December 7 20 December 14 36 20 @ $ 280.00 $ 14.00 $ 21.00 36@ = 756.00 1,036.00 December 15 20 @ $ 280.00 26 @ S 21.00 $ 546.00 = 14.00 $ x = 22.00 10 @ $220.00

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Answer 1

Perpetual : FIFO Goods Purchased Cost of Goods Sold Inventory Balance Unit # of Cost Per Goods # of Units Cost Per Cost of # of Cost Per Ending Date Units Purchased sold Unit Goods Sold Units Unit Inventory Dec-07 20 14.00 280.00 20 14.00 280.00 Dec-14 36 21.00 756.00 20 14.00 280.00 36 21.00 756.00 56 1036.00 Dec-15 20 280.00 26 21.00 546.00 10 21.00 210.00 26 21.00 546.00 Dec-21 30 25.00 750.00 26 21.00 546.00 30 25.00 750.00 56. 1296 Totals Cost of Goods sold 490.00 Ending Inventory 1296.00 14.00

Perpetual :Weighted Average Cost Goods Purchased Cost of Goods Sold Inventory Balance # of Cost Per Goods # of Units Cost Per Cost of # of Cost Per Ending Date Units Unit Purchased sold Unit Goods Sold Units Unit Inventory Dec-07 20 14 280.00 20 14.00 280 Dec-14 36 21 756.00 20 14.00 280 36 21.00 756 Average Cost 56 18.50 1036(1036/56) Dec-15 30 18.50 555 26 18.50 1036 Dec-21 30 25.00 750 26 18.50 481 30 25.00 750 Average Cost 56 21.98 1231 (1231/56) Totals 555.0 1231

Perpetual : Specific Identification Goods Purchased Cost of Goods Sold Inventory Balance # of Cost Per Goods # of Units Cost Per Cost of # of Cost Per Ending Date Units Unit Purchased sold Unit Goods Sold Units Unit Inventory Dec-07 20 14.00 280.00 20 14.00 280.00 Dec-14 36 21.00 756.00 20 14.00 280.00 36 21.00 756.00 56 1036.00 Dec-15 16 14.00 224.00 4 14.00 56.00 14 21.00 294.00 22 21.00 462.00 26 518.00 Dec-21 30 25.00 750.00 4 14 56.00 22 21 462.00 30 25.00 750.00 56 1268 Totals Cost of Goods sold 518.00 Ending Inventory 1268.00