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Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Required: Hemming uses a perpetual inventory system. Units Acquired at Cost @ $10.60 = 215 units 320 units 415 units 115 units 1,065 units @ $15.60 = @ $20.60 = @ $25.60 = $2,279 4,992 8,549 2,944 $ 18,764 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 profit for FIFO method and LIFO method. Units Sold at Retail 180 units 260 units 400 units 840 units @ $40.60 @ $40.60 @ $40.60

Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Required: Hemming uses a perpetual inventory system. Units Acquired at Cost @ $10.60 = 215 units 320 units 415 units 115 units 1,065 units @ $15.60 = @ $20.60 = @ $25.60 = $2,279 4,992 8,549 2,944 $ 18,764 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 profit for FIFO method and LIFO method. Units Sold at Retail 180 units 260 units 400 units 840 units @ $40.60 @ $40.60 @ $40.60

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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Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Required: Hemming uses a perpetual inventory system. Required 1 Date January 1 January 10 March 14 Required 2 Required 3 Total March 14 Complete this question by entering your answers in the tabs below. Goods Purchased # of units 320 at 215 units. 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 profit for FIFO method and LIFO method. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold Cost per unit Cost per unit Units Acquired at Cost @ $10.60 = 320 units $ 15.60 415 units 115 units 1,065 units # of units sold 180 at $ 10.60 @ $15.60 = 35 at $ @ $20.60 = 10.60 @ $25.60 = CO Cost of Goods Sold = $ 2,279 $ 2,944 $ 18,764 $ 1,908.00 4,992 371.00 8,549 # of units 215 Units Sold at Retail at 35 at 35 at 320 at at 180 units 260 units 400 units 840 units $ 10.60 = $ 10.60 = $ 15.60 = @ $40.60 Inventory Balance Cost per unit $10.60 = $ 10.60 @ $40.60 @ $40.60 Inventory Balance $ $ $ $ 2,279.00 371.00 371.00 4,992.00 5,363.00
Transcribed Image Text:Hemming Company reported the following current-year purchases and sales for its only product. Activities Beginning inventory Sales Purchase Sales Purchase Sales Purchase Totals Date January 1 January 10 March 14 March 15 July 30 October 5 October 26 Required: Hemming uses a perpetual inventory system. Required 1 Date January 1 January 10 March 14 Required 2 Required 3 Total March 14 Complete this question by entering your answers in the tabs below. Goods Purchased # of units 320 at 215 units. 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 profit for FIFO method and LIFO method. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Perpetual FIFO: Cost of Goods Sold Cost per unit Cost per unit Units Acquired at Cost @ $10.60 = 320 units $ 15.60 415 units 115 units 1,065 units # of units sold 180 at $ 10.60 @ $15.60 = 35 at $ @ $20.60 = 10.60 @ $25.60 = CO Cost of Goods Sold = $ 2,279 $ 2,944 $ 18,764 $ 1,908.00 4,992 371.00 8,549 # of units 215 Units Sold at Retail at 35 at 35 at 320 at at 180 units 260 units 400 units 840 units $ 10.60 = $ 10.60 = $ 15.60 = @ $40.60 Inventory Balance Cost per unit $10.60 = $ 10.60 @ $40.60 @ $40.60 Inventory Balance $ $ $ $ 2,279.00 371.00 371.00 4,992.00 5,363.00
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