Question

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 295 units @ $13.80 = $ 4,071 240 units @ $43.80 480 units @ $18.80 = 9,024 Date Activities Jan. 1 Beginning inventory Jan.10 Sales Mar.14 Purchase Mar.15 Sales July 30 Purchase Oct. 5 Sales Oct.26 Purchase 420 units @ $43.80 495 units @ $23.80 = 11,781 465 units @ $43.80 195 units @ $28.80 = 1,465 units 5,616 $30,492 Totals 1,125 units

Answer 1

Requirement: A Perpetual FIFO Inventory Balance Unit Cost Total Cost Goods Purchsed Cost of Goods sold Unit Cost Total Cost units Unit Cost Total Cost Date units units Jan-01 Beginning inventory 295 13.80 4071 Jan-10 Sales 13.80 13.80 240 3312 55 759 Mar-14 Purchase 18.80 759 480 9024 55 13.80 18.80 480 9024 9783 535 Mar-15 Sales 55 13.80 759 115 18.80 2162 18.80 365 6862 2162 420 7621 115 Jul-30 Purchase 2162 495 23.80 11781 115 18.80 495 11781 23.80 610 13943 Oct-05 Sales 18.80 2162 115 145 23.80 3451 23.80 8330 350 465 10492 145 3451 Oct-26 Purchase 28.80 195 5616 145 23.80 3451 195 28.80 5616 Totals 21425 9067 1125 340

Requirement: B Perpetual LIFO Goods Purchased Cost of Goods sold Inventory Balance Unit Cost Total Cost Unit Cost Total Cos Units Unit Cost Total Cost units Date Units Jan-01 Beginning inventory 4071 295 13.80 Jan-10 Sales 3312 240 13.80 55 13.80 759 Mar-14 Purchase 18.80 9024 480 55 13.80 759 480 18.80 9024 9783 535 Mar-15 Sales 420 18.80 7896 55 13.80 759 1128 60 18.80 1887 7896 420 115 Jul-30 Purchase 495 23.80 11781 55 13.80 759 60 18.80 1128 495 23.80 11781 13668 610 Oct-05 Sales 465 23.80 11067 55 13.80 759 1128 60 18.80 30 23.80 714 2601 145 465 11067 Oct-26 Purchase 195 28.80 5616 55 13.80 759 60 18.80 1128 30 23.80 714 195 28.80 5616 Totals 22275 1125 340 8217

Requirement: C Gross margin FIFO LIFO Sales revenue Less: Cost of goods sold Gross margin 49275 49275 21425 22275 27850 27000