# Class+Exercise+5+Solution - Class Exercise 5 Solution...

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Class Exercise 5SolutionINVENTORY COSTING METHODSPart ATrey Monson starts 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 710 units @ \$6.00 costPurchases on December 1420 units @\$12.00 costPurchases on December 2115 units @\$14.00 costUse the following table to calculate (1) the value of ending inventory on December 31 and (2) cost of goods sold for December assuming First-In, First-Out (FIFO).DateGoods PurchasedCost of Goods SoldInventory Balance12/ 710 @ \$ 6 = \$ 6010 @ \$ 6= \$ 60.0012/1420 @ \$12 = \$24010 @ \$ 6= \$300.0020 @ \$1212/1510 @ \$ 6 15 @ \$12= \$180.005 @ \$12 = \$120.0012/2115 @ \$14 = \$21015 @ \$12= \$390.00______15 @ \$14\$120.00Use the following table to calculate (1) the value of ending inventory on December 31 and (2) cost of goods sold for December assuming Last-In, First-Out (LIFO).DateGoods PurchasedCost of Goods SoldInventory Balance12/710 @ \$ 6 = \$ 6010 @ \$ 6= \$ 6012/1420 @ \$12 = \$24010 @ \$ 6= \$30020 @ \$12 12/1515 @ \$12 = \$18010 @ \$ 6= \$1205 @ \$1212/2115 @ \$14 = \$21010 @ \$ 65 @ \$12= \$330____15 @ \$14\$180
Class Exercise 5