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emming Company reported the following current-year purchases and sales for its only product. Date Activities January 1 Beginning inventory January 10 Sales March 14 Purchase March 15 Sales July 30 Purchase Sales Purchase Totals October 5 October 26 Units Acquired at Cost @ $10 = 200 units 350 units 450 units 100 units 1,100 units @$15 @ $20 @ $25 = $ 2,000 5,250 9,000 2,500 $ 18,750 Units Sold at Retai 150 units 300 units 430 units 880 units @$40 @ $40 @ $40

emming Company reported the following current-year purchases and sales for its only product. Date Activities January 1 Beginning inventory January 10 Sales March 14 Purchase March 15 Sales July 30 Purchase Sales Purchase Totals October 5 October 26 Units Acquired at Cost @ $10 = 200 units 350 units 450 units 100 units 1,100 units @$15 @ $20 @ $25 = $ 2,000 5,250 9,000 2,500 $ 18,750 Units Sold at Retai 150 units 300 units 430 units 880 units @$40 @ $40 @ $40

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

**Required Information** **Hemming Company Inventory Analysis** *Hemming Company reported the following current-year purchases and sales for its only product.* | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |------------|------------------------|-----------------------------|-----------------------| | January 1 | Beginning inventory | 200 units @ $10 = $2,000 | | | January 10 | Sales | | 150 units @ $40 | | March 14 | Purchase | 350 units @ $15 = $5,250 | | | March 15 | Sales | | 200 units @ $40 | | July 30 | Purchase | 450 units @ $20 = $9,000 | | | October 5 | Sales | | 430 units @ $40 | | October 26 | Purchase | 100 units @ $25 = $2,500 | | | | **Totals** | **1,100 units** = $18,750 | **880 units** | **Tasks Required:** 1. **Determine costs for ending inventory and cost of goods sold** using the FIFO method. 2. **Determine costs for ending inventory and cost of goods sold** using the LIFO method. 3. **Compute the gross profit** for both FIFO and LIFO methods. Hemming uses a perpetual inventory system. **Instructions:** Complete the analysis by entering your answers in the required tabs.
Transcribed Image Text:**Required Information** **Hemming Company Inventory Analysis** *Hemming Company reported the following current-year purchases and sales for its only product.* | Date | Activities | Units Acquired at Cost | Units Sold at Retail | |------------|------------------------|-----------------------------|-----------------------| | January 1 | Beginning inventory | 200 units @ $10 = $2,000 | | | January 10 | Sales | | 150 units @ $40 | | March 14 | Purchase | 350 units @ $15 = $5,250 | | | March 15 | Sales | | 200 units @ $40 | | July 30 | Purchase | 450 units @ $20 = $9,000 | | | October 5 | Sales | | 430 units @ $40 | | October 26 | Purchase | 100 units @ $25 = $2,500 | | | | **Totals** | **1,100 units** = $18,750 | **880 units** | **Tasks Required:** 1. **Determine costs for ending inventory and cost of goods sold** using the FIFO method. 2. **Determine costs for ending inventory and cost of goods sold** using the LIFO method. 3. **Compute the gross profit** for both FIFO and LIFO methods. Hemming uses a perpetual inventory system. **Instructions:** Complete the analysis by entering your answers in the required tabs.
The image appears to be from an educational website related to accounting or inventory management. It displays a table with sections for "Goods Purchased," "Cost of Goods Sold," and "Inventory Balance." Here's a transcription: ### Table Overview - **Headers:** - Date - Goods Purchased - # of units - Cost per unit - Cost of Goods Sold - # of units sold - Cost per unit - Cost of Goods Sold - Inventory Balance - # of units - Cost per unit - Inventory Balance ### Data Entries - **January 1:** - Inventory Balance: - 200 units at $10.00 - Total: $2,000.00 - **January 10:** - No data entered. - **March 14:** - Goods Purchased: - 350 units at $15.00 - **March 15:** - Cost of Goods Sold: - No units sold - Total Cost of Goods Sold: $0.00 - **Total March 14 Inventory Balance:** - Total: $5,250.00 - **July 30:** - Goods Purchased: - 450 units at $20.00 - **Total July 30:** - No data filled for Cost of Goods Sold. - **October 5:** - No data entered. - **Total October 5:** - No data filled for Cost of Goods Sold. - **October 26:** - Goods Purchased: - 100 units at $25.00 - **Totals:** - Total Inventory Balance appears as a zero or not filled for specific entries. This table is likely used for tracking inventory and understanding how purchases and sales impact the inventory balance over time.
Transcribed Image Text:The image appears to be from an educational website related to accounting or inventory management. It displays a table with sections for "Goods Purchased," "Cost of Goods Sold," and "Inventory Balance." Here's a transcription: ### Table Overview - **Headers:** - Date - Goods Purchased - # of units - Cost per unit - Cost of Goods Sold - # of units sold - Cost per unit - Cost of Goods Sold - Inventory Balance - # of units - Cost per unit - Inventory Balance ### Data Entries - **January 1:** - Inventory Balance: - 200 units at $10.00 - Total: $2,000.00 - **January 10:** - No data entered. - **March 14:** - Goods Purchased: - 350 units at $15.00 - **March 15:** - Cost of Goods Sold: - No units sold - Total Cost of Goods Sold: $0.00 - **Total March 14 Inventory Balance:** - Total: $5,250.00 - **July 30:** - Goods Purchased: - 450 units at $20.00 - **Total July 30:** - No data filled for Cost of Goods Sold. - **October 5:** - No data entered. - **Total October 5:** - No data filled for Cost of Goods Sold. - **October 26:** - Goods Purchased: - 100 units at $25.00 - **Totals:** - Total Inventory Balance appears as a zero or not filled for specific entries. This table is likely used for tracking inventory and understanding how purchases and sales impact the inventory balance over time.
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