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 23 units for $30 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 13 units @ $12.00 cost 30 units @ $18.00 cost 23 units @ $22.00 cost Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.

Answer 1

Date	# of units		Cost per unit		Goods Purchased	# of units sold		Cost per unit		Cost of Goods sold	# of units		Cost per unit		Inventory Balance
December 7	13	@	$12	=	$156		@		=		13	@	$12	=	$156
December 14	30	@	$18	=	$540						13	@	$12	=	$156
											30	@	$18	=	$540
															$696
December 15						13	@	$12	=	$156	20	@	$18	=	$360
						10	@	$18	=	$180
										$336
December 21	23	@	$22	=	$506						20	@	$18	=	$360
											23	@	$22	=	$506
Totals															$        866