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 Acquired at Cost 300 units @ $14.00 Date Activities 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 Oct. 5 Sales 500 units @ $24.00 12,000 %3! 480 units @ $44.00 Oct.26 Purchase 200 units @ $29.00 5,800 %3D Totals 1,520 units $31,880 1,190 units

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 Acquired at Cost 300 units @ $14.00 Date Activities 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 Oct. 5 Sales 500 units @ $24.00 12,000 %3! 480 units @ $44.00 Oct.26 Purchase 200 units @ $29.00 5,800 %3D Totals 1,520 units $31,880 1,190 units

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Description: Required:Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to the cost of goods sold using FIFO. Required information[The following information applies to the questions displayed below.]Hemming Co. re

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

Required:
Hemming uses a perpetual inventory system.

1. Determine the costs assigned to ending inventory and to the cost of goods sold using FIFO.

Perpetual FIFO:
Goods Purchased
Cost of Goods Sold
Inventory Balance
# of
units
Cost per
# of units
Cost per Cost of Goods
Sold
Date
# of units
Cost per
Inver
unit
sold
unit
unit
Bali
January 1
300 @
$ 14.00 =
$
January 10
March 14
March 15

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