Required:Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using Weighted Average **Hemming Co. Current-Year Purchases and Sales Report****Date and Activities:**- **Jan. 1:** Beginning Inventory - **Units Acquired at Cost:** 200 units @ $10 = $2,000- **Jan. 10:** Sales - **Units Sold at Retail:** 150 units @ $40- **Mar. 14:** Purchase - **Units Acquired at Cost:** 350 units @ $15 = $5,250- **Mar. 15:** Sales - **Units Sold at Retail:** 300 units @ $40- **July 30:** Purchase - **Units Acquired at Cost:** 450 units @ $20 = $9,000- **Oct. 5:** Sales - **Units Sold at Retail:** 430 units @ $40- **Oct. 26:** Purchase - **Units Acquired at Cost:** 100 units @ $25 = $2,500**Totals:**- **Units Acquired at Cost:** 1,100 units = $18,750- **Units Sold at Retail:** 880 unitsThis data shows the sequential purchase and sale activities of Hemming Co.'s only product across selected dates. The purchases are detailed with the cost per unit and the total cost, while the sales are listed with the retail price and quantity sold.

Name: Required:Hemming uses a perpetual inventory system. Determine the cost
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Required:Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using Weighted Average **Hemming Co. Current-Year Purchases and Sales Report****Date and Activities:**- **Jan. 1:** Beginni

The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the basis of the flow of inventory. LIFO method, FIFO method, and average method are considered as the most popular method for inventory valuation. Cost of goods sold = $ 13,973 Ending inventory = $ 4,777

Business

Accounting

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 200 units @ $10 = $ 2,000 Jan. 10 Sales 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales 300 units @ $40 July 30 Purchase 450 units @ $20 = 9,000 Oct. 5 Sales 430 units @ $40 Oct. 26 Purchase 100 units @ $25 = 2,500 Totals 1,100 units $18,750 880 units

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 200 units @ $10 = $ 2,000 Jan. 10 Sales 150 units @ $40 Mar. 14 Purchase 350 units @ $15 = 5,250 Mar. 15 Sales 300 units @ $40 July 30 Purchase 450 units @ $20 = 9,000 Oct. 5 Sales 430 units @ $40 Oct. 26 Purchase 100 units @ $25 = 2,500 Totals 1,100 units $18,750 880 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following items should not be included in the cost of inventory? Select one: O a. The initial purchase price of inventory O b. Freight out cost to deliver inventory to a customer c. Insurance cost paid to purchase the inventory d. Delivery cost paid to purchase the inventory
Describe the calculation of the cost of goods sold when using the periodic inventory system.
Sheffield Corp. markets CDs of numerous performing artists. At the beginning of March, Sheffield had in beginning inventory 2,500 CDs with a unit cost of $8. During March, Sheffield made the following purchases of CDs. March 5. March 13 1,900 @ 3,500 @ $9 $10 March 21 March 26 5,200 @ $11 $12 1,900 @ During March 11,500 units were sold. Sheffield uses a periodic inventory system.
Identify which of the following statement is correct for perpetual inventory system? Under the perpetual Inventory system, on the purchase of Inventory purchase account is debited. When valuing ending Inventory under a perpetual Inventory system, oldest units purchased during the period using FIFO are allocated to the cost of goods sold when units are sold. When valuing ending Inventory under a perpetual Inventory system, weighted average cost method requires that a new weighted average unit cost be calculated after every sale. 09/03/2024 15:01 When valuing ending Inventory under a perpetual inventory system, valuation using weighted average is the same as the valuation using weighted average under the periodic Inventory system.
The cost of goods sold (Using the FIFO method) $.__________________________ The of cost of the ending Inventory (using the LIFO method) $____________________ The cost of Goods sold (Using the LIFO method) $_______________________________
The account used to adjust the perpetual inventory records when a difference exists between the physical count and the amount in the perpetual inventory records is called a. Inventory Short and Over. b. Estimated Returns Inventory. c. Inventory Shrinkage. d. Merchandise Inventory
The cost of goods sold is based on the oldest purchases under which method of calculating inventory cost? O A. weighted average method O B. first in, first out (FIFO) O C. gross profit method O D. last in, first out (LIFO)
Identify four inventory costing methods for assigning cost to ending inventory and cost of goods sold and briefly explain the difference in the methods.