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 Units Acquired at Cost Units Sold at Retail

Jan. 1 Beginning inventory 260 units @ $12.40 = $ 3,224

Jan. 10 Sales 215 units @ $42.40

Mar. 14 Purchase 420 units @ $17.40 = 7,308

Mar. 15 Sales 380 units @ $42.40

July 30 Purchase 460 units @ $22.40 = 10,304

Oct. 5 Sales 425 units @ $42.40

Oct. 26 Purchase 160 units @ $27.40 = 4,384

Totals 1,300 units   $ 25,220 1,020 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.

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 260 units @ $12.40 = $ 3,224 215 units @ $42.40 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 420 units @ $17.40 = 7,308 460 units @ $22.40 = 10,384 380 units @ $42.40 425 units @ $42.40 = 160 units @ $27.40 1,300 units 4,384 $25,220 1,020 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. Complete this questions by entering your answers in the below tabs.

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Answer 1

Requirement: 1 | units Date Jan-01 Beginning inventory Jan-10 Sales Mar-14 Purchase 420 Mar-15 Sales Perpetual FIFO Goods Purchsed Cost of Goods sold Ending Inventory Balance Unit Cost Total Cost units Unit Cost Total Cost units Unit Cost Total Cost 1 260 12.40 3224 215 12.40 2666 45 12.40 558 17.40 7308 45 12.40 558 420 17.40 7308 465 7866 45 12.40 558 85 17.40 1479 335 17.40 5829 380 6387 1479 22.40 10304 85 17.40 1479 460 22.40 10304 545 11783) 85 17.40 1479 120 22.40 2688 340 22.40 7616 425 9095 120 2688 27.40 4384 120 22.40 2688 160 27.40 4384 1020 18148 280 7072 85 Jul-30 Purchase 460 Oct-05 Sales Oct-26 Purchase 160 Totals

Requirement: 2 Date Jan-01 Beginning inventory Jan-10 Sales Mar-14 Purchase Mar-15 Sales 558 380 Jul-30 Purchase Perpetual LIFO Goods Purchased Cost of Goods sold Ending Inventory Balance Units Unit Cost Total Cos Units Unit Cost Total Cost units Unit Cost Total Cost 260 12.40 3224 215 12.40 2666 45 12.40 558 420 17.40 7308 45 12.40 558 420 17.40 7308 465 7866 380 17.40 6612 45 12.40 40 17.40 696 6612 85 1254 22.40 10304 45 12.40 558 40 17.40 696 460 22.40 10304 545 11558 425 22.40 9520 45 12.40 558 40 17.40 696 3522.40 784) 1 425 9520 120 2038 160 27.40 4384 45 12.40 558 40 17.40 696 35 22.40 784) 160 | 27.40 4384 1020 18798 280 6422 Oct-05 Sales Oct-26 Purchase Totals

Requirement: 3 Gross margin Sales revenue Less: Cost of goods sold Gross margin FIFO 43248 18148 25100 LIFO 43248 18798 24450