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 Date Activities Beginning Jan. 1 inventory Jan. 10 Sales Mar. 14 Purchase Mar.15 Sales July30 Purchase Oct. 5 Sales Oct.26 Purchase Totals Units Acquired at Cost Units Sold at Retail 215 units@ $10.60 = $ 2,279 180 units@ $40.60 320 units@ $15.60 = 4,992 260 units@ $40.60 415 units@ $20.60 = 8,549 400 units@ $40.60 115 units@ $25.60 = 2,944 1,065 units $18,764 840 units Required: Hemming uses a perpetual inventory system. 1 of 3 !! Next > arch o to

Answer 1

	FIFO	Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory	215	$           10.60	$      2,279.00				215	$           10.60	$      2,279.00
Jan-10	Sales				180	$           10.60	$      1,908.00	35	$           10.60	$         371.00
Mar-14	Purchase	320	$           15.60	$      4,992.00				35	$           10.60	$         371.00
								320	$           15.60	$      4,992.00
Mar-15	Sales				35	$           10.60	$         371.00
					225	$           15.60	$      3,510.00	95	$           15.60	$      1,482.00
Jul-30	Purchase	415	$           20.60	$      8,549.00				95	$           15.60	$      1,482.00
								415	$           20.60	$      8,549.00
Oct-05	Sales				95	$           15.60	$      1,482.00
					305	$           20.60	$      6,283.00	110	$           20.60	$      2,266.00
Jan-30	Purchase	115	$           25.60	$      2,944.00				110	$           20.60	$      2,266.00
								115	$           25.60	$      2,944.00
	Total	1065		$   18,764.00	840		$   13,554.00	225		$      5,210.00

	LIFO	Cost of goods available for sale			Cost of Goods Sold			Ending Balance
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
Jan-01	Beginning Inventory	215	$           10.60	$      2,279.00				215	$           10.60	$      2,279.00
Jan-10	Sales				180	$           10.60	$      1,908.00	35	$           10.60	$         371.00
Mar-14	Purchase	320	$           15.60	$      4,992.00				35	$           10.60	$         371.00
								320	$           15.60	$      4,992.00
Mar-15	Sales				260	$           15.60	$      4,056.00	35	$           10.60	$         371.00
								60	$           15.60	$         936.00
Jul-30	Purchase	415	$           20.60	$      8,549.00				35	$           10.60	$         371.00
								60	$           15.60	$         936.00
								415	$           20.60	$      8,549.00
Oct-05	Sales				400	$           20.60	$      8,240.00	35	$           10.60	$         371.00
								60	$           15.60	$         936.00
								15	$           20.60	$         309.00
Jan-30	Purchase	115	$           25.60	$      2,944.00				35	$           10.60	$         371.00
								60	$           15.60	$         936.00
								15	$           20.60	$         309.00
								115	$           25.60	$      2,944.00
	Total	1065		$   18,764.00	840		$   14,204.00	225		$      4,560.00