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