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 160 units @ $41.20 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals Units Acquired at Cost 230 units @ $11.20 = $ 2,576 350 units @ $16.20 = 5,670 430 units @ $21.20 - 9,116 320 units @ $41.20 400 units @ $41.20 130 units @ $26.20 = 1.140 units 3,406 $20,768 880 units 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

Answer 1

Ansuecs : [cheret A] ineentory A Determine the cost assigned to ending and to cost of soud sold sing fifo. pate Good Purchased ofuit Cost Pow. cost of sead sold un cost les coster wat God said Inventory Balance of unit Cosip.v. Inuo Ba Tarwax y1 230 @311-20 = 12576 20- Jawory 10 160 $11.20 $1792 ea tree $1792 70 @ 11.20 = $784 350 @ 16.20 = $5670 Maschiy 350 F16.20 Maschis 70 @ 250 11.20 416.20 0784 5.4050 420@ 556454 @ 11020 (784) (250€ 16.20 (460) 100 @16.20 1620 430@21.20 -49116 July 30 430 @ $21-20 530@ F10736 octobers 100 @ 300 @ 16.20 21.20 1620 $ 6360 [loo@16.20 : 31620] 300 20.20 : 36360) 130 @ $3756 130 26.20 : 63406 Octobes 26 130 120.20 Totals 260 23.7 161,62 31460G 11, 12

Chart R * Determine the cost assigned to ending ineentory and cost ar sevd sold using LIFO :- Date Goods Purchased # of uit Cost Perwit cost of geod sold #alwut COP COGS Inventory Balance: tuint cop Irena, Palaute Janil 230@11.20 - $2576 Jando LGO $11.20 $1792 70 @11.20=9784 March 14 350@ $16.20 350@16.20 = $5670 420 - $6454 Marchais 330@116.20 $ 5184 (320@16.20 : $Sigu? 100 @ 17.7: 1270 430@531-20-39116 July 30 430@ 121.30 530 @ $10386 Oct. 5 uoo @421020 $8480 [you@$2120 = $848) _ 13@@ -($1906 October 26 130 @ 26.20 130 - $1906 130@ 26.20 = $ $3106 Tatal 260 @pay =65312 $ 15456

1 * compute the gross margen LIFO method :- for FI to Method and FIFO $36,256 LIFO $ 36,256 Sale Gereerue [880 @41.20] $14606 $ 15456 Less:- Cost of geod sold [chart al chart b) Gross massin $21,550 $ 20,800