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 | 255 | units | @ $12.20 | = | $ | 3,111 | ||||||||
Jan. | 10 | Sales | 210 | units | @ $42.20 | |||||||||||
Mar. | 14 | Purchase | 410 | units | @ $17.20 | = | 7,052 | |||||||||
Mar. | 15 | Sales | 350 | units | @ $42.20 | |||||||||||
July | 30 | Purchase | 455 | units | @ $22.20 | = | 10,101 | |||||||||
Oct. | 5 | Sales | 430 | units | @ $42.20 | |||||||||||
Oct. | 26 | Purchase | 155 | units | @ $27.20 | = | 4,216 | |||||||||
Totals | 1,275 | units | $ | 24,480 | 990 | 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.
Step 1.
|
Perpetual FIFO: | ||||||||
Date | Goods Purchased | Cost of Goods Sold | Inventory Balance | |||||
# of Units | Cost per unit | # of units sold | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Inventory Balance | |
Jan. 1 | 255 | $12.20 | $3,111.00 | |||||
Jan. 10 | 210 | $12.20 | $2,562 | 45 | $12.20 | $549.00 | ||
Mar. 14 | 410 | $17.20 | 45 | $12.20 | $549.00 | |||
410 | $17.20 | $7,052.00 | ||||||
Mar. 15 | 45 | $12.20 | $549.00 | |||||
305 | $17.20 | $5,246.00 | 105 | $17.20 | $1,806.00 | |||
July. 30 | 455 | $22.20 | 105 | $17.20 | $1,806.00 | |||
455 | $22.20 | $10,101.00 | ||||||
Oct. 5 | 105 | $17.20 | $1,806.00 | |||||
325 | $22.20 | $7,215.00 | 130 | $22.20 | $2,886.00 | |||
Oct. 26 | 155 | $27.20 | 130 | $22.20 | $2,886.00 | |||
155 | $27.20 | $4,216.00 | ||||||
Totals | 990 | $17,378.00 | 285 | $7,102.00 | ||||
Cost of goods sold is $17,378 and Ending Inventory is $7,102 | ||||||||
Perpetual LIFO: | ||||||||
Date | Goods Purchased | Cost of Goods Sold | Inventory Balance | |||||
# of Units | Cost per unit | # of units sold | Cost per unit | Cost of Goods Sold | # of units | Cost per unit | Inventory Balance | |
Jan. 1 | 255 | $12.20 | $3,111.00 | |||||
Jan. 10 | 210 | $12.20 | $2,562 | 45 | $12.20 | $549.00 | ||
Mar. 14 | 410 | $17.20 | 45 | $12.20 | $549.00 | |||
410 | $17.20 | $7,052.00 | ||||||
Mar. 15 | 45 | $12.20 | $549.00 | |||||
350 | $17.20 | $6,020.00 | 60 | $17.20 | $1,032.00 | |||
July. 30 | 455 | $22.20 | 45 | $12.20 | $549.00 | |||
60 | $17.20 | $1,032.00 | ||||||
455 | $22.20 | $10,101.00 | ||||||
Oct. 5 | 45 | $12.20 | $549.00 | |||||
430 | $22.20 | $9,546.00 | 60 | $17.20 | $1,032.00 | |||
25 | $22.20 | $555.00 | ||||||
Oct. 26 | 155 | $27.20 | 45 | $12.20 | $549.00 | |||
60 | $17.20 | $1,032.00 | ||||||
25 | $22.20 | $555.00 | ||||||
155 | $27.20 | $4,216.00 | ||||||
990 | $18,128.00 | 285 | $6,352.00 | |||||
Cost of goods sold is $18,128 and Ending Inventory is $6,352 |
FIFO | LIFO | |
Sales Revenue (210 + 350 + 430 = 990 * $42.20) | $41,778 | $41,778 |
Less: Cost of Goods Sold | ($17,378) | ($18,128) |
Gross Margin | $24,400 | $23,650 |
Required information [The following information applies to the questions displayed below.] Hemming Co. reported the...
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 255 units @ $12.20 = $ 3,111 Jan. 10 Sales 210 units @ $42.20 Mar. 14 Purchase 410 units @ $17.20 = 7,052 Mar. 15 Sales 350 units @ $42.20 July 30 Purchase 455 units @ $22.20 = 10,101 Oct....
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 255 units @ $12.20 = $ 3,111 Jan. 10 Sales 210 units @ $42.20 Mar. 14 Purchase 410 units @ $17.20 = 7,052 Mar. 15 Sales 350 units @ $42.20 July 30 Purchase 455 units @ $22.20 = 10,101 Oct....
Hemming Co. reported the following current-year purchases and sales for its only product. Units Acquired at Cost 255 units @ $12.20 = $ 3,111 Units Sold at Retail 210 units @ $42.20 410 units @ $17.20 = 7,052 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 350 units @ $42.20 455 units @ $22.20 = 10,101 430 units @ $42.20 155 units @ $27.20 =...
[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 255 units @ $12.20 = $ 3,111 Jan. 10 Sales 210 units @ $42.20 Mar. 14 Purchase 410 units @ $17.20 = 7,052 Mar. 15 Sales 350 units @ $42.20 July 30 Purchase 455 units @ $22.20 = 10,101 Oct. 5 Sales...
Required information Use the following information for the Exercises below. [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 255 units @ $12.20 = $ 3,111 210 units @ $42.20 410 units @ $17.20 = 7,052 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 350...
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...
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...
Check 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 230 units @ $11.20 = $ 2,576 350 units @ $16.20 = 5,670 Date Activities Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July30 Purchase Oct. 5 Sales Oct. 26 Purchase Totals 160 units @ $41.20 320 units @ $41.20 400 units...
Date 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. Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 230 units @ $11.20 - $ 2,576 Jan. 10 Sales 160 units e $41.20 Mar.14 Purchase 350 units $16.20 - 5,670 Mar.15 Sales 320 units @ $41.20 July 30 Purchase 430 units $21.20 - 9,116 Oct. 5 Sales 400 units @ $41.20...
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 200 units @ $19 = $ 2,888 150 units @ $40 358 units @ $15 = 5,250 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 300 units @ $40 458 units...