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