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 three inventory purchases Purchases on December 7 Purchases on December 14 Purchases on December 21 20 units $10.00 cost 36 units $15.00 cost 30 units 18.00 cost Required: Monson sells 30 units for $25 each on December 15. Assume the periodic inventory system is used. Determine the costs assigned to the December 31 ending inventory when costs are assigned based on FIFO Periodic FIFO: Cost of Goods Available for Sale Cost of Goods Sold Inventory Balance Cost per unit Cost of Goods | # of Available for units of units Cost per Ending Cost of # of units sold per unit Goods Sold In ending inventor unit Inventory Sale Purchases December 7 December 14 December 21 20$ 10.00$ 36 15.0o 30 86 200 540 540 1,280 15.00 18.00 18.00 Total

Explanation / Answer

Periodic FIFO: Cost of goods available for sale Cost of goods sold Inventory balance Purchases: 7-Dec 20 10 200 20 10 200 14-Dec 36 15 540 10 15 150 26 15 390 21-Dec 30 18 540 30 18 540 Total 86 1280 30 350 56 930 Periodic LIFO: Cost of goods available for sale Cost of goods sold Inventory balance Purchases: 7-Dec 20 10 200 20 10 200 14-Dec 36 15 540 36 15 540 21-Dec 30 18 540 30 18 540 Total 86 1280 30 540 56 740

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.