Required: Hemming uses a perpetual inventory system. 3. Compute the gross margin for FIFO method and LIFO method.
Required: Hemming uses a perpetual inventory system. 3. Compute the gross margin for FIFO method and LIFO method.
Chapter1: Financial Statements And Business Decisions
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Required:
Hemming uses a perpetual inventory system.
3. Compute the gross margin for FIFO method and LIFO method.
![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
300 units @ $14.00
Date
Units Sold at Retail
Jan. 1 Beginning inventory
= $ 4,200
Jan.10 Sales
250 units @ $44.00
Mar.14 Purchase
520 units @ $19.00
9,880
Mar.15 Sales
460 units @ $44.00
July30 Purchase
500 units @ $24.00
12,000
Oct. 5 Sales
480 units @ $44.00
Oct.26 Purchase
200 units @ $29.00
5,800
Totals
1,520 units
$31,880
1,190 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F863779a1-7705-4b9e-9ef9-cd4ef1904411%2Fbbea0781-233c-4d0b-9a5b-3b7fad5fa086%2Fhy1l35_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
300 units @ $14.00
Date
Units Sold at Retail
Jan. 1 Beginning inventory
= $ 4,200
Jan.10 Sales
250 units @ $44.00
Mar.14 Purchase
520 units @ $19.00
9,880
Mar.15 Sales
460 units @ $44.00
July30 Purchase
500 units @ $24.00
12,000
Oct. 5 Sales
480 units @ $44.00
Oct.26 Purchase
200 units @ $29.00
5,800
Totals
1,520 units
$31,880
1,190 units

Transcribed Image Text:Compute the gross margin for FIFO method and LIFO method.
FIFO:
LIFO:
Sales revenue
Less: Cost of goods sold
Gross margin
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