Question

1 Required Information Use the following information for the Exercises below. The following information applies to the questions displayed below] 12 points Hemming Co. reported the following current-year purchases and sales for its only product eBook Activities Units Acquired at Cost 265 units $12.60 Units Sold at Retail Date Jan. 1 Beginning inventory Jan. 18 Sales Mar.14 Purchase - $ 3,339 225 units $42.60 430 units $17.60 7,568 Hint Mar.15 Sales 37e units $42.60 July 38 Purchase Oct. 5 Sales Oct. 26 Purchase 465 units $22.68 18, se9 440 units $42.68 165 units $27.60 4,554 Ack Totals 1, 325 units $25,970 1,e35 units References Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 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 c0st of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

Answer 1

Answer with working is given below

1 & 2 FIFO LIFO Ending Inventory Cost of Goods sold $7,379 $18,591 $6,679 $19,291 LIFO Sales Cost of Goods sold Gross Profit FIFO $44,091 $18,591 $25,500 $44,091 $19,291 $24,800 Total Sales Units 225 370 440 1,035 Price 42.60 42.60 Total $9,585 $15,762 $18,744 $44,091 42.60 42.60 Perpetual FIFO Goods Purchased Cost Per Total # of Units Unit Cost Cost of Goods sold # of Units Cost Per Sold Unit COGS Date Inventory Balance # of Units Cost Per Inventory Sold Unit Balance 265 $12.60 $3,339 1-Jan Opening balance 10-Jan Sales 225 $12.60 $2,835 40 $12.60 $504 14-Mar Purchase 430 $17.60 $7,568 40 430 $470 $12.60 $17.60 $504 $7,568 $8,072 15-Mar Sale 40 330 $12.60 $17.60 $504 $5,808 $17.60 30-Jul Purchase 465 $22.60 $10,509 100 100 100 465 565 $17.60 $22.60 $1,760 $1,760 $1,760 $10,509 12,269 5-Oct Sale 100 340 $17.60 $17.00 $22.60 $1,760 $7,684 $22.60 26-Oct Purchase 165 $27.60 $4,554 125 125 125 165 290 $22.60 $27.60 $2,825 $2,825 $2,825 $4,554 $7,379 Total COGS $18,591 Opening stock Add: Purchase $3,339 $22,631 $25,970 $7,379 $18,591 Less: Closing stock Cost of Goods sold Perpetual LIFO Goods Purchased Cost of Goods sold Inventory Balance Date # of Units Cost Per Unit Total Cost # of Units Cost Per Sold Unit # of Unite #of Units Cost Per Inventory Sold Unit Balance COGS 1-Jan Opening balance 265 $12.60 $3,339 10-Jan Sales 225 $12.60 $2,835 40 $12.60 $504 $12.60 $17.60 14-Mar Purchase 430 $17.60 $7,568 40 430 $470 40 60 100 15-Mar Sale 370 $17.60 $6,512 $12.60 $17.60 30-Jul Purchase 465 $22.60 $10,509 40 $12.60 $17.60 $22.60 $504 $7,568 $8,072 $504 $1,056 $1,560 $504 $1,056 $10,509 12,069 $504 $1,056 $565 $2,125 $504 $1,056 $565 $4,554 $6,679 5-Oct Sale 440 $22.60 60 465 565 40 60 25 125 40 60 25 165 290 $9,944 $12.60 $17.60 $22.60 26-Oct Purchase 165 $27.60 $4,554 $12.60 $17.60 $22.60 $27.60 Total COGS $19,291 Opening stock Add: Purchase $3,339 $22,631 $25,970 $6,679 $19,291 Less: Closing stock Cost of Goods sold