Required information Trey Monson starts a merchandising business on December 1 a

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 28 units for $50 each. Purchases on December 7 Purchases on December 14 Purchases on December 21 18 units $20.00 cost 32 units $30.00 cost 28 units $36.00 cost Required: Monson sells 28 units for $50 each on December 15. Of the units sold, 14 are from the December 7 purchase and 14 are from the December 14 purchase. Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on specific identification. Specific Identification Perpetual: Goods purchased Cost of Goods Sold Inventory Balance #of # of units Cost per unit cost ofGoods! # of units count cost per Cost per Inventory Balance Date unit Sold SO 18 20.00S 360.00 18 $ 20.00 360.00 32$ 30.00960.00 $1,320.00 December 7 18 $ 20.00$360.00 December 14 32| @? $ 30.00| -| $960.00 December 15 $ 0.00 $ 0.00 December 21 28$ 36.00 008.00 $20.00- 30.00 36.00- Totals

Explanation / Answer

Specific Identification Goods Purchased Cost of goods sold Inventory Balance Date No.of Units Cost per unit Total No.of Units Cost per unit Cost of good sold No.of Units Cost per unit Inventory Balance Dec.7 18 $20.00 $360.00 18 $20.00 $360.00 Dec.14 32 $30.00 $960.00 18 $20.00 $360.00 32 $30.00 $960.00 Dec.15 14 $20.00 $280.00 4 $20.00 $80.00 14 $30.00 $420.00 18 $30.00 $540.00 Dec.21 28 $36.00 $1,008.00 4 $20.00 $80.00 18 $30.00 $540.00 28 $36.00 $1,008.00 Totals $700.00 $1,628.00 Costs assigned to the December 31 ending Inventory $1,628.00

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