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$3.50 acc225 week 6 QS 6-1

Found in Business: Accounting
Chapter 1, # 0

Q:

Complete Quick Study question QS 6-1 on p. 247
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.

 

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