Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases:
Dec. 7: 10 units at $6
Dec. 14: 20 units @ $12
Dec. 21: 15 units @ $14

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.

Can anyone tell me if my answers are correct. If not, do not give me the correct answer, but just tell me which ones I need to work on. Thanks!

a). Ending inventory is 390
b). Ending inventory is 330
c). Ending inventory is 360
d). Ending inventory is 378

Go for FIFO Menthod. It is simple and eagy to adoptabel.

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Originally Posted by cutie1227

Tevin Trader starts a merchandising business on December 1 and enters into three inventory purchases:
Dec. 7: 10 units at $6
Dec. 14: 20 units @ $12
Dec. 21: 15 units @ $14

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.

Can anyone tell me if my answers are correct. If not, do not give me the correct answer, but just tell me which ones I need to work on. Thanks!

a). ending inventory is 390
b). ending inventory is 330
c). ending inventory is 360
d). ending inventory is 378

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Your answers are all correct.