Chapter 7 quiz.docx - Required information Trey Monson starts a merchandising business on December 1 and enters into the following three inventory

Chapter 7 quiz.docx - Required information Trey Monson...

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Required informationTrey 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 costRequired:Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method. Required informationTrey 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 cost
Required:Monson sells 15 units for $20 each on December 15. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on LIFO. Perpetual LIFO: Goods purchased Cost of Goods Sold Inventory Balance Date # of units Cost per unit Cost of Goods Available for Sale # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance December 7 10 @ $6.00 = $60.00 10 @ $6.00 = $60.00 December 14 20 @ $12.00 = $240.00 10 @ $6.00 = $60.00 20 @ $12.00 = 240.00 $300.00 December 15 15 @ $12.00 = $180.00 10 @ $6.00 = $60.00 5 @ $12.00 = 60.00 $120.00 December 21 15 @ $14.00 = $210.00 10 @ $6.00 = $60.00 5 @ $12.00 = 60.00 15 @ $14.00 = 210.00 Totals $180.00 $330.00

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