Question

Required information Use the following information for the Exercises below [The following information applies to the questions displayed below] Hemming Co. reported the following current-year purchases and sales for its only product. Activities Units Acquired at Cost 265 units $12.60 Units Sold at Retail Date Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase 3,339 225 units @ $42.60 430 units $17.60 7,568 370 units $42.60 Mar. 15 Sales July 30 Purchase 465 units @ $22.60 10,509 440 units @ $42.60 Oct. 5 Sales 165 units @$27.60 Oct. 26 Purchase 4,554 1,325 units $25,970 1,035 units Totals Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system.

please complete all the question.

Answer 1

Requirement: A Perpetual FIFO Goods Purchsed Unit Cost Cost of Goods sold Unit Cost Total Cost units Total Cost units 3339 Date Jan-01 Beginning inventory Jan-10 Sales Mar-14 Purchase 225 12.60 2835 Inventory Balance units Unit Cost Total Cost 265 12.60 40 12.60 504 40 12.60 504 430 17.60 7568 470 8072 100 17.60 1760 430 17.60 7568 Mar-15 Sales 40 330 370 12.60 17.60 504 5808 6312 100 100 1760 1760 Jul-30 Purchase L 465 22.60 10509 17.60 465 22.60 10509 565 12269 2825 Oct-05 Sales 125 22.60 100 340 440 17.60 22.60 1760 7684 9444 125 Oct-26 Purchase 165 27.60 4554 125 165 290 22.60 27.60 2825 2825 4554 7379 Totals 1035 18591

Requirement: B cod Date Jan-01 Beginning inventory Jan-10 Sales Mar-14 Purchase 17.60 430 470 Mar-15 Sales 504 Jul-30 Purchase Perpetual LIFO Goods Purchased Cost of Goods sold Inventory Balance Units Unit Cost Total Cos Units Unit Cost Total Cost units Unit Cost Total Cost 265 12.60 3339 | 225 12.60 2835 40 12.60 504| 430 7568 40 12.60 504 17.60 7568 80721 370 17.60 6512 40 12.60 1 60 17.60 1056 370 6512 100 1560 465 22.60 10509 40 12.60 60 17.60 1056 465 22.60 10509 12069 440 22.60 9944 1 40 12.60 504 60 17.60 1056 22.60 565 440 9944 21251 27.60 4554 12.60 504 17.60 25 22.60 165 27.60 4554 1035 19291 290 6679 504/ Oct-05 Sales Oct-26 Purchase 60 1056 565 Totals

Requirement: C Gross margin Sales revenue Less: Cost of goods sold Gross margin FIFO 44091 18591 25500 LIFO 44091 19291 24800