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

This preview shows page 1 - 3 out of 3 pages.

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

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture