Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 10 units for $50 each. 8 units @ $20.00 cost 17 units @ $30.00 cost 15 units @ $36.00 cost Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.

Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. Also, on December 15, Monson sells 10 units for $50 each. 8 units @ $20.00 cost 17 units @ $30.00 cost 15 units @ $36.00 cost Purchases on December 7 Purchases on December 14 Purchases on December 21 Required: Monson uses a perpetual inventory system. Determine the costs assigned to the December 31 ending inventory based on the FIFO method.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 40E: Identify items missing in determining cost of goods sold For (a) through (e), identify the items...

See similar textbooks

Similar questions

Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for last-in, first-out (LIFO).
LIFO (perpetual) Inventory Cost of Goods Purchased Cost of Goods Sold Cost of Inventory Remaining Numberof units Unit Cost Total Cost Numberof units Unit Cost Total Cost Numberof units Unit Cost
Which of the following statements about FIFO is true? Select one: a. All of the statements are correct b. Cost of goods sold is calculated using the costs of the earliest purchased inventory. c. The value of merchandise inventory is made up of the costs of the most recently purchased inventory. d. Under FIFO, a schedule is used to track the different costs of purchased inventory.
Which of the following should be included in inventory on the balance sheet? Goods out on approval to customers- Goods in transit purchased FOB destination Raw materials Goods received on consignment- Goods sold where large returns are predictable
Required: Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using Weighted Average
Calculate Cost of Goods Manufactured. Cost of Goods Available for Sale. Gross margin ratio based on Cost of Goods Sold. Inventory to be shown in the Statement of Financial Position as of December 31, 2021.
Conversion cost during the period? Cost of goods available for sales? Cost of goods sold? If the product was sold P80 per unit, how much was its unit cost? Inventory value that should be shown in the Statement of Financial Position of 08/31/21?
Please prepare a cost by nature/expense by nature income statement for the following points. In particular please explain whether point a) (first point) should be included in the income statement. In point a), Is there sufficient information for write-off expenses to be recorded in the income statement and should write-off of assets be included in the income statement? a) Write off (in minus) of short-term financial assets 9 000b) Other costs by nature 4 000c) Change in inventories of traded goods + 2 000d) Revenue from sale of building 50 000e) Income tax 10%f) Revenue from sale of traded goods 12 000g) Retained profits from previous years 10 000h) Accumulated depreciation of building 49 000i) Historical cost of building 102 000
Compute for the ff: Total sales Cost of sales Consignment profit Value of Inventory on Consignment
(A) Using the FIFO assumption, calculate the amount charged to cost of goods sold, the value of the ending inventory and the gross profit for May. Show all computations. (B) Using the weighted-average method, calculate the amount assigned to the inventory on hand on May 31, and the gross profit for May. Show all computations.