Question

Exercises 6 Help Save & 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 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 @ $16.20 = 430 units @ $21.20 – 5,670 9,116 160 units @ $41.20 320 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. < Prev 4 of 5 !!! Next >

Answer 1

FIFO Goods Purchased Cost per unit Cost of Goods Sold Cost Date # of units Cost No. COGS Inventory Balance # of units Cost per unit 230 S 11.20 $ Balance 2,576.00 Jan-10 1601 $11.20 $1,792.00 70 $ 11.20 $ 784.00 Mar- 14 3 50 $16.20 $5,670.00 70 $ 350 $ 11.20 16.20 $ $ $ 784.00 5,670.00 6.454.00 Mar-15 70 250 $11.20 $16.20 $784.00 $4,050.00 0 100 $ $ 11.20 16.20 $ $ $ 1,620.00 1,620.00 Jul 301 4301 $21.20 $9.116.00 0 $ 1001 s 430 $ 11.20 16.20 21.20 $ $ $ S 1.620.00 9,116.00 10.736.00 Ort-051 $ 1 1 0 00 300 11.20 $16.20 $21.20 $0.00 $1,620.00 $6,360.00 0 $ 0 $ 1300 $ 11.20 16.20 21.20 $ $ $ 2.756.00 Oct- 26 1 30 $26.20 $3,406.00 T O S ol $ 130 $ 130 S 11.20 16.20 21.20 26.20 $ S $ $ 2,756.00 3,406.00 Totals | $ 14,606 Perpetual LIFO: Goods Purchased Cost per unit Cost of Goods Sold Cost #of units Cost No. COGS Date Jan-01 Inventory Balance # of units Cost per unit 230 $11.20 Balance $2,576.00 Jan-03 160 $11.20 $1,792.00 70 $11.20 $784.00 Feb- 141 3 50 $16.20 $5,670.00 70 350 $11.20 $16.20 $784.00 $5,670.00 $6,454.00 Feb 15 0 320 $11.20 $16.20 $0.00 $5,184.00 70 301 $11.20 $16.20 $784.00 $486.00 $1.270.00 Jun-30 430 $21.20 $9,116.00 70 30 4301 $11.20 $16.20 $21.20 $784.00 $486.00 $9,116.00 $10,386.00 Nov 061 T T o o 70 $11.201 $16.20 $21.20 $0.00) 30 $11.20 $16.20 $21.20 T $784.00 $486.00 $636.00 $1,906.00 4 001 $8.480.00 301 Nov.191 $26.20 $3,406.00 701 30 30] $11.20 $16.20 $21.20 $26.20 $ | $ $784.00 $4R6,00 $636.00 3,406.00 5,312.00 1301 $ 15,456.00 I FIFO $ $ Less:COGS Gross Profit LIFO 36,256 $ (14,606) S 21,650 $ 36,256 (15,456) 20,800 S Gross Margin(G.P/Sales) 60% 57%