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. Units Sold at Retail Activities Date Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales. Oct. 26 Purchase. Totals Required: Hemming uses a perpetual inventory system. Units Acquired at Cost 200 units @ $10 = $2,000 350 units @ $15 = 450 units @ $20 = 100 units@ $25= 1,100 units 5,250 9,000 2,500 $18,750 150 units @ $40 300 units @ $40 430 units @ $40 880 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 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. Units Sold at Retail Activities Date Jan. 1 Beginning inventory Jan. 10 Sales Mar. 14 Purchase Mar. 15 Sales July 30 Purchase Oct. 5 Sales. Oct. 26 Purchase. Totals Required: Hemming uses a perpetual inventory system. Units Acquired at Cost 200 units @ $10 = $2,000 350 units @ $15 = 450 units @ $20 = 100 units@ $25= 1,100 units 5,250 9,000 2,500 $18,750 150 units @ $40 300 units @ $40 430 units @ $40 880 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 margin for FIFO method and LIFO method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Units Sold at
Retail
Activities
Date
Jan. 1 Beginning inventory
Jan. 10 Sales
Mar. 14 Purchase
Mar. 15 Sales
July 30 Purchase.
Oct. 5 Sales
Oct. 26 Purchase
Totals
Required:
Hemming uses a perpetual inventory system.
Units Acquired at Cost
200 units @ $10= $2,000
350 units @ $15 =
450 units @ $20 =
100 units @ $25 =
1,100 units
5,250
9,000
2,500
$18,750
150 units @ $40
300 units @ $40
430 units@ $40
880 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 margin for FIFO method and LIFO method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0bc663fd-eebf-4c95-bc98-c9ae78f32d21%2F77f22aad-faef-4691-9cf2-1f9f14133542%2Fhyihg9p_processed.jpeg&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.
Units Sold at
Retail
Activities
Date
Jan. 1 Beginning inventory
Jan. 10 Sales
Mar. 14 Purchase
Mar. 15 Sales
July 30 Purchase.
Oct. 5 Sales
Oct. 26 Purchase
Totals
Required:
Hemming uses a perpetual inventory system.
Units Acquired at Cost
200 units @ $10= $2,000
350 units @ $15 =
450 units @ $20 =
100 units @ $25 =
1,100 units
5,250
9,000
2,500
$18,750
150 units @ $40
300 units @ $40
430 units@ $40
880 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 margin for FIFO method and LIFO method.
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