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 220 units @ $10.80 = $ 2,376 January 10 Sales 190 units @ $40.80 March 14 Purchase 330 units @ $15.80 = 5,214 March 15 Sales 280 units @ $40.80 July 30 Purchase 420 units @ $20.80 = 8,736 October 5 Sales 390 units @ $40.80 October 26 Purchase 120 units @ $25.80 = 3,096 Totals 1,090 units $ 19,422 860 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.
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 220 units @ $10.80 = $ 2,376 January 10 Sales 190 units @ $40.80 March 14 Purchase 330 units @ $15.80 = 5,214 March 15 Sales 280 units @ $40.80 July 30 Purchase 420 units @ $20.80 = 8,736 October 5 Sales 390 units @ $40.80 October 26 Purchase 120 units @ $25.80 = 3,096 Totals 1,090 units $ 19,422 860 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.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 11RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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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 | 220 | units | @ $10.80 | = | $ 2,376 | |||
January 10 | Sales | 190 | units | @ $40.80 | |||||
March 14 | Purchase | 330 | units | @ $15.80 | = | 5,214 | |||
March 15 | Sales | 280 | units | @ $40.80 | |||||
July 30 | Purchase | 420 | units | @ $20.80 | = | 8,736 | |||
October 5 | Sales | 390 | units | @ $40.80 | |||||
October 26 | Purchase | 120 | units | @ $25.80 | = | 3,096 | |||
Totals | 1,090 | units | $ 19,422 | 860 | 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.
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