Question

Help with financial accounting? Tevin Trader starts a merchandising business?

I have worked on these problems, but I am out of balance on both. Can someone please help me.

Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases:

December 7 10 units @ $ 6 cost
December 14 20 units @ $12 cost
December 21 15 units @ $14 cost

Trader sells 15 units for $25 each on December 15. Eight of the sold units are from the December 7
purchase and seven are from the December 14 purchase. Trader uses a perpetual inventory system.
Determine the costs assigned to the December 31 ending inventory when costs are assigned based on
(a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification.

5 years ago - 1 answers

Best Answer

Chosen by Asker

December 31 ending inventory
(a) FIFO $390
(b) LIFO $330
(c) weighted average $360
(d) specific identification $378

5 years ago