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Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 Activities Beginning inventory Sales Purchase Sales Purchase Sales July 30 October 5 October 26 Purchase Totals Units Acquired at Cost 220 units @ $10.80 = $2,376 Units Sold at Retail 190 units @ $40.80 330 units @ $15.80= 5,214 280 units @ $40.80 420 units @ $20.80= 8,736 390 units @ $40.80 120 units 1,090 units @ $25.80 = 3,096 $ 19,422 860 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 profit for FIFO method and LIFO method.

Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 January 10 March 14 March 15 Activities Beginning inventory Sales Purchase Sales Purchase Sales July 30 October 5 October 26 Purchase Totals Units Acquired at Cost 220 units @ $10.80 = $2,376 Units Sold at Retail 190 units @ $40.80 330 units @ $15.80= 5,214 280 units @ $40.80 420 units @ $20.80= 8,736 390 units @ $40.80 120 units 1,090 units @ $25.80 = 3,096 $ 19,422 860 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 profit for FIFO method and LIFO method.

SWFT Individual Income Taxes
SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory January 10 Sales March 14 March 15 July 30 October 5 Purchase Sales Purchase Sales October 26 Purchase Totals Units Acquired at Cost 220 units. @ $10.80= Units Sold at Retail $ 2,376 190 units @ $40.80 330 units. @$15.80= 5,214 280 units @ $40.80 420 units @ $20.80= 8,736 390 units @ $40.80 120 units 1,090 units @ $25.80 = 3,096 $ 19,422 860 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 profit for FIFO method and LIFO method.
Transcribed Image Text:[The following information applies to the questions displayed below.] Hemming Company reported the following current-year purchases and sales for its only product. Date January 1 Activities Beginning inventory January 10 Sales March 14 March 15 July 30 October 5 Purchase Sales Purchase Sales October 26 Purchase Totals Units Acquired at Cost 220 units. @ $10.80= Units Sold at Retail $ 2,376 190 units @ $40.80 330 units. @$15.80= 5,214 280 units @ $40.80 420 units @ $20.80= 8,736 390 units @ $40.80 120 units 1,090 units @ $25.80 = 3,096 $ 19,422 860 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 profit for FIFO method and LIFO method.
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