Question

Check Required information (The following information applies to the questions displayed below.) Hemming Co. reported the following current-year purchases and sales for its only product. Units Sold at Retail Units Acquired at Cost 230 units @ $11.20 = $ 2,576 350 units @ $16.20 = 5,670 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 160 units @ $41.20 320 units @ $41.20 400 units @ $41.20 430 units @ $21.20 = 130 units @ $26 1,140 units 9,116 3,406 $20,768 880 units 1 Required: Hemming uses a perpetual inventory system, 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. < Prev < Prev 34 of 5 gva o 5 Next > Next >

Answer 1

1 FIFO: Date Jan 1 Jan 10 Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unventory Balanc 230 @ $11.20 = $2,576.00 160 @ $11.20 = $1,792.00 70 @ $11.20 = $784.00 March 14 350 @ $16.20 70 @ 350 a $11.20 = $16.20 = $784.00 $5,670.00 March 15 70 @ 250 @ $11.20 = $16.20 = $784.00 $4,050.00 100 @ $16.20 = $1,620.00 July 30 430 @ $21.20 100 @ 430 @ $16.20 = $21.20 = $1,620.00 $9,116.00 Oct 5 100 @ 300 @ $16.20 = $21.20 = $1,620.00 $6,360.00 130 @ $21.20 = $2,756.00 Oct 26 130 @ $26.20 130 @ 130 @ $21.20 = $26.20 = $2,756.00 $3,406.00 S6,162.00 Total S14,606.00 2 LIFO: Date Jan 1 Jan 10 Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unventory Balanc 230 @ $11.20 = $2,576.00 160 @ $11.20 = $1,792.00 70 @ $11.20 = $784.00 March 14 350 @ $16.20 70 @ 350 a $11.20 = $16.20 = $784.00 $5,670.00 March 15 320 @ $16.20 = $5,184.00 70 @ 30 @ $11.20 = $16.20 = $784.00 $486.00 July 30 430 @ $21.20 70 @ 30 @ 430 @ $11.20 = $16.20 = $21.20 = $784.00 $486.00 $9,116.00 Oct 5 400 a $21.20 = $8.480.00 70 @ 30 @ 30 @ $11.20 = $16.20 = $21.20 = $784.00 $486.00 $636.00 Oct 26 130 @ $26.20 70 @ 30 @ 30 @ 130 @ $11.20 = $16.20 = $21.20 = $26.20 = $784.00 $486.00 $636.00 $3,406.00 $5,312.00 Total $15,456.00 Sales COGS Gross Marign FIFO $36.256.00 $14,606.00 $21,650.00 LIFO $36.256.00 $15,456.00 $20,800.00