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Exercise 5-8 Perpetual: Inventory costing methods-FIFO and LIFOP1 Hemming Co. reported the following current year purchases and sales for its only product. Date Jan. 1 Jan 10 Mar, 14 Mar 15 July 30 Oct 5 Oct 26 Activities Date Goods Purchased 1/1 Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Units Acquired at Cost 200 units $10-$2,000 350 unts $15- 5.250 450 unts o $20- 9,000 100 units @ $25 2.500 1,100 units $18,750 Units Sold at Retall CGS 150 uns $40 300 units $40 430 un$40 Required Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and LIFO. (e) Compute the gross profit for each method. FIFO 880 units Inventory Balance (El) guolio

Exercise 5-8 Perpetual: Inventory costing methods-FIFO and LIFOP1 Hemming Co. reported the following current year purchases and sales for its only product. Date Jan. 1 Jan 10 Mar, 14 Mar 15 July 30 Oct 5 Oct 26 Activities Date Goods Purchased 1/1 Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Units Acquired at Cost 200 units $10-$2,000 350 unts $15- 5.250 450 unts o $20- 9,000 100 units @ $25 2.500 1,100 units $18,750 Units Sold at Retall CGS 150 uns $40 300 units $40 430 un$40 Required Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and LIFO. (e) Compute the gross profit for each method. FIFO 880 units Inventory Balance (El) guolio

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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Exercise 5-8 Perpetual: Inventory costing methods-FIFO and LIFO P1 Hemming Co. reported the following current year purchases and sales for its only product. Date Jan. 1 Jan. 10 Mar. 14 Mar 15 30 3/15 7/30 45 10/26 100 @ 25 July Oct 5 Oct 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date 1/1 1/10 3/14 350@15= $5,250 IFO Gross Margin (Gross Profit) Sales CGS GM or GP Units Acquired at Cost 200 units a $10-$2,000 350 unts $15- 5.250 450 units o $20- 9,000 100 units @ $25 2.500 1,100 units $18,750 CGS Units Sold at Retail Required Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and LIFO. (c) Compute the gross profit for each method. FIFO Goods Purchased. 150@40 $6,000 150 uns 540 300 units $40 430 un $40 880 units Inventory Balance (El) 200@10= $2000 50@$40=2000 50@546 #2000
Transcribed Image Text:Exercise 5-8 Perpetual: Inventory costing methods-FIFO and LIFO P1 Hemming Co. reported the following current year purchases and sales for its only product. Date Jan. 1 Jan. 10 Mar. 14 Mar 15 30 3/15 7/30 45 10/26 100 @ 25 July Oct 5 Oct 26 Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date 1/1 1/10 3/14 350@15= $5,250 IFO Gross Margin (Gross Profit) Sales CGS GM or GP Units Acquired at Cost 200 units a $10-$2,000 350 unts $15- 5.250 450 units o $20- 9,000 100 units @ $25 2.500 1,100 units $18,750 CGS Units Sold at Retail Required Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using (a) FIFO and LIFO. (c) Compute the gross profit for each method. FIFO Goods Purchased. 150@40 $6,000 150 uns 540 300 units $40 430 un $40 880 units Inventory Balance (El) 200@10= $2000 50@$40=2000 50@546 #2000
LIFO Date Goods Purchased LIFO Gross Margin (Gross Profit) Sales -CGS GM or GP 18 CGS 80 1860 Inventory Balance (EI) zton
Transcribed Image Text:LIFO Date Goods Purchased LIFO Gross Margin (Gross Profit) Sales -CGS GM or GP 18 CGS 80 1860 Inventory Balance (EI) zton
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