Question

2 Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 art 1 of 2 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. ints eBook Complete this questions by entering your answers in the below tabs. Hint Required 1 Required 2 Required 3 Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Ask Perpetual FIFO: Goods Purchased # of units unit Cost per Cost of Goods Sold # of units Cost of Goods sold unit Sold Cost per Inventory Balance # of units Inventory unit Balance Cost per References Date January 1 215 @ S 10.60 = s 2.279.00 January 10 March 14 March 15 July 30 October 5 October 26 Totals

Answer 1

1.

	FIFO	Purchases			Cost of Goods Sold			Inventory on hand
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
1-Jan	Beginning Inventory							215	$             10.60	$        2,279.00
10-Jan	Sales				180	$             10.60	$        1,908.00	35	$             10.60	$           371.00
14-Mar	Purchase	320	$            15.60	$    4,992.00				35	$             10.60	$           371.00
								320	$             15.60	$        4,992.00
15-Mar	Sales				35	$             10.60	$           371.00
					225	$             15.60	$        3,510.00	95	$             15.60	$        1,482.00
30-Jul	Purchase	415	$            20.60	$    8,549.00				95	$             15.60	$        1,482.00
								415	$             20.60	$        8,549.00
5-Oct	Sales				95	$             15.60	$        1,482.00
					305	$             20.60	$        6,283.00	110	$             20.60	$        2,266.00
26-Oct	Purchase	115	$            25.60	$    2,944.00				110	$             20.60	$        2,266.00
								115	$             25.60	$        2,944.00
Total	Total	850		$ 16,485.00	840		$     13,554.00	225		$        5,210.00

2.

	LIFO	Purchases			Cost of Goods Sold			Inventory on hand
Date	Activity	Units	Unit Price	Amount	Units	Unit Price	Amount	Units	Unit Price	Amount
1-Jan	Beginning Inventory							215	$             10.60	$        2,279.00
10-Jan	Sales				180	$             10.60	$        1,908.00	35	$             10.60	$           371.00
14-Mar	Purchase	320	$            15.60	$    4,992.00				35	$             10.60	$           371.00
								320	$             15.60	$        4,992.00
15-Mar	Sales				260	$             15.60	$        4,056.00	35	$             10.60	$           371.00
								60	$             15.60	$           936.00
30-Jul	Purchase	415	$            20.60	$    8,549.00				35	$             10.60	$           371.00
								60	$             15.60	$           936.00
								415	$             20.60	$        8,549.00
5-Oct	Sales				400	$             20.60	$        8,240.00	35	$             10.60	$           371.00
								60	$             15.60	$           936.00
								15	$             20.60	$           309.00
26-Oct	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	Total	850		$ 16,485.00	840		$     14,204.00	225		$        4,560.00

3.

	FIFO	LIFO
Sales Revenue	$ 34,104.00	$    34,104.00
Cost of Goods Sold	$ 13,554.00	$    14,204.00
Gross Margin	$ 20,550.00	$    19,900.00

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