Hemming Company reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail January 1 Beginning inventory 205 units @ $10.20 = $ 2,091 January 10 Sales 160 units @ $40.20 March 14 Purchase 300 units @ $15.20 = 4,560 March 15 Sales 250 units @ $40.20 July 30 Purchase 400 units @ $20.20 = 8,080 October 5 Sales 375 units @ $40.20 October 26 Purchase 105 units @ $25.20 = 2,646 Totals 1,010 units $ 17,377 785 units Required: Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 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: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals $0.00 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals $0.00 Compute the gross profit for FIFO method and LIFO method. FIFO LIFO Sales revenue Less: Cost of goods sold Gross profit
Hemming Company reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail January 1 Beginning inventory 205 units @ $10.20 = $ 2,091 January 10 Sales 160 units @ $40.20 March 14 Purchase 300 units @ $15.20 = 4,560 March 15 Sales 250 units @ $40.20 July 30 Purchase 400 units @ $20.20 = 8,080 October 5 Sales 375 units @ $40.20 October 26 Purchase 105 units @ $25.20 = 2,646 Totals 1,010 units $ 17,377 785 units Required: Hemming uses a perpetual inventory system. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 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: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals $0.00 Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. Perpetual LIFO: Date Goods Purchased Cost of Goods Sold Inventory Balance # of units Cost per unit # of units sold Cost per unit Cost of Goods Sold # of units Cost per unit Inventory Balance January 1 January 10 March 14 Total March 14 March 15 Total March 15 July 30 Total July 30 October 5 Total October 5 October 26 Totals $0.00 Compute the gross profit for FIFO method and LIFO method. FIFO LIFO Sales revenue Less: Cost of goods sold Gross profit
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 51E: Inventory Costing Methods On June 1, Welding Products Company had a beginning inventory of 210 cases...
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Question
Hemming Company reported the following current-year purchases and sales for its only product.
Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||||
---|---|---|---|---|---|---|---|---|---|
January 1 | Beginning inventory | 205 | units | @ $10.20 | = | $ 2,091 | |||
January 10 | Sales | 160 | units | @ $40.20 | |||||
March 14 | Purchase | 300 | units | @ $15.20 | = | 4,560 | |||
March 15 | Sales | 250 | units | @ $40.20 | |||||
July 30 | Purchase | 400 | units | @ $20.20 | = | 8,080 | |||
October 5 | Sales | 375 | units | @ $40.20 | |||||
October 26 | Purchase | 105 | units | @ $25.20 | = | 2,646 | |||
Totals | 1,010 | units | $ 17,377 | 785 | units |
Required:
Hemming uses a perpetual inventory system.
- Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
- Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
- 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.
|
|
Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
|
|
Compute the gross profit for FIFO method and LIFO method.
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|
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