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 290 units @ $13.60 = $ 3,944 Jan. 10 Sales 260 units @ $43.60 Mar. 14 Purchase 500 units @ $18.60 = 9,300 Mar. 15 Sales 430 units @ $43.60 July 30 Purchase 490 units @ $23.60 = 11,564 Oct. 5 Sales 470 units @ $43.60 Oct. 26 Purchase 190 units @ $28.60 = 5,434 Totals 1,470 units $ 30,242 1,160 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.
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 290 units @ $13.60 = $ 3,944
Jan. 10 Sales 260 units @ $43.60
Mar. 14 Purchase 500 units @ $18.60 = 9,300
Mar. 15 Sales 430 units @ $43.60
July 30 Purchase 490 units @ $23.60 = 11,564
Oct. 5 Sales 470 units @ $43.60
Oct. 26 Purchase 190 units @ $28.60 = 5,434 Totals 1,470 units $ 30,242 1,160 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.
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