Hemming Co. reported the following current-year purchases end sales for its only product. Activities Units Acquired at Cost 3e0 units e $14.80 - $ 4,200 Date Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 sales Mar.14 Purchase 250 units e $44.00 528 units e $19.00 9, 88e Mar.15 Sales 460 units e $44.80 July38 Purchase Oct. 5 Sales Oct. 26 Purchase se8 units e $24.00 - 12, 888 288 units e $29.80 488 units e $44.00 5,800 $31,88e 1,198 units Totals 1,520 units
Hemming Co. reported the following current-year purchases end sales for its only product. Activities Units Acquired at Cost 3e0 units e $14.80 - $ 4,200 Date Units Sold at Retail Jan. 1 Beginning inventory Jan. 10 sales Mar.14 Purchase 250 units e $44.00 528 units e $19.00 9, 88e Mar.15 Sales 460 units e $44.80 July38 Purchase Oct. 5 Sales Oct. 26 Purchase se8 units e $24.00 - 12, 888 288 units e $29.80 488 units e $44.00 5,800 $31,88e 1,198 units Totals 1,520 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
[The following information applies to the questions displayed below.]
Hemming Co. reported the following current-year purchases and sales for its only product.
Activities
Units Acquired at Cost
3e0 units e $14.00 - $ 4,200
Date
Units Sold at Retail
Jan. 1 Beginning inventory
Jan. 10 Sales
250 units e s44.00
Mar.14 Purchase
Mar. 15 Sales
July 30 Purchase
Oct. 5 Sales
Oct.26 Purchase
520 units e $19.00 -
9,88e
468 units e $44.80
see units e $24.00
12, 800
488 units e $44.00
200 units e $29.e0
5,800
Totals
1,520 units
$31,880
1,198 units
Required:
Hemming uses a periodic inventory system.
(e) Determine the costs essigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs ossigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
a) Perlodic FIFO
Cost of Goode Avallable for Sale
Cost of Goode sold
Ending Inventory
Cost of Goode
# of unite
Cost per
unit
# of unite Cost per
sold
Cost of
Cost
Ending
per unit Inventory
# of unite
Avallable for
Sale
In ending
Inventory
unit
Goode Sold
Beginning inventory
300 S 14.00
4,200
250 S 14.00
3,500
Purchases:
March 14
520 s 19.00
9,880
460 S 19.00
8,740
July 30
500s 24.00
12,000
October 26
200
Total
1,520
26.080
710
12,240
b) Perlodic LIFO
Cost of Goode Avallable for Sale
Coat of Goode Sold
Ending Inventory
Cost of Goode
Avallable for
Sale
# of unite
of unita Cost per
unit
# of units Cost per
aold
Coat of
Cost
In ending
Inventory
Ending
per unit Inventory
unit
Goods Sold
Beginning inventory
300
14.00
4,200
Purchases:
March 14
520
19.00
9.880
July 30
500
S 24.00
12.000
October 26
200
Total
1,520
26.080
c) Grose Margin
FIFO
LIFO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4726056b-a0d8-4167-a534-8f03670a441a%2Fdd502781-b9ef-4fe4-9966-a0c2087edda4%2Frxbyigs_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Hemming Co. reported the following current-year purchases and sales for its only product.
Activities
Units Acquired at Cost
3e0 units e $14.00 - $ 4,200
Date
Units Sold at Retail
Jan. 1 Beginning inventory
Jan. 10 Sales
250 units e s44.00
Mar.14 Purchase
Mar. 15 Sales
July 30 Purchase
Oct. 5 Sales
Oct.26 Purchase
520 units e $19.00 -
9,88e
468 units e $44.80
see units e $24.00
12, 800
488 units e $44.00
200 units e $29.e0
5,800
Totals
1,520 units
$31,880
1,198 units
Required:
Hemming uses a periodic inventory system.
(e) Determine the costs essigned to ending inventory and to cost of goods sold using FIFO.
(b) Determine the costs ossigned to ending inventory and to cost of goods sold using LIFO.
(c) Compute the gross margin for each method.
a) Perlodic FIFO
Cost of Goode Avallable for Sale
Cost of Goode sold
Ending Inventory
Cost of Goode
# of unite
Cost per
unit
# of unite Cost per
sold
Cost of
Cost
Ending
per unit Inventory
# of unite
Avallable for
Sale
In ending
Inventory
unit
Goode Sold
Beginning inventory
300 S 14.00
4,200
250 S 14.00
3,500
Purchases:
March 14
520 s 19.00
9,880
460 S 19.00
8,740
July 30
500s 24.00
12,000
October 26
200
Total
1,520
26.080
710
12,240
b) Perlodic LIFO
Cost of Goode Avallable for Sale
Coat of Goode Sold
Ending Inventory
Cost of Goode
Avallable for
Sale
# of unite
of unita Cost per
unit
# of units Cost per
aold
Coat of
Cost
In ending
Inventory
Ending
per unit Inventory
unit
Goods Sold
Beginning inventory
300
14.00
4,200
Purchases:
March 14
520
19.00
9.880
July 30
500
S 24.00
12.000
October 26
200
Total
1,520
26.080
c) Grose Margin
FIFO
LIFO
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